Question

State with reason whether you agree or disagree with the following statement:

Utility and satisfaction are one and the same.

Options

• Agree

• Disagree

Answer 1

I disagree with the above statement.

Reasons:

1. Utility is the ability of a commodity to satisfy wants. Conversely, satisfaction refers to the joyous feeling that a person has from finishing their consumption.
2. The foundation of consumption is utility or expected enjoyment. However, contentment is the actual realisation at the end of the consumption process.
3. A commodity with utility that is consumed might not satisfy the customer. For instance, taking sour medications won't make you happy. Conversely, the majority of a commodity's utility comes from user satisfaction through its usage. For instance, ice cream that provides enjoyment after eating is useful.

As a result, utility and satisfaction are distinct concepts rather than the same.