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Improving Standard of Living - Buying Products and Services |
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This article describes the importance of buying of products and services and how that buying helps in improving our standard of living. |
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| Author: Kaviarasu |
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In the ordinary sense, utility means usefulness. In fact, it refers to the power of satisfying a human want. So any good or service which can satisfy a human want is said to possess utility. It is necessary to know the actual meaning of utility as it is one of the determining factor of any product or service. Suppose you buy and consume a fruit, say apple.
You get a certain amount of satisfaction from its consumption. Thus we can say that an apple has a power to satisfy a human want. Not only apple, almost all goods possess a human want satisfying power.
What is Value?
When we talk about value of anything, at the next moment, we will ask a question that what is it's price? So there is some relationship between value and price. That is, value can be expressed in terms of money. Earlier, the term value was used as the power of exchange. For example, if one bag of rice is exchanged for two bags of wheat, then we can say that the value of one bag rice is two bags of wheat. But today, the term value refers to the purchasing power of a commodity. So we can understand that when value is expressed in terms of money, then it is known as price. Again we consider the same example above, if the price of a bag of wheat is $5, then the price of a bag of rice is $10. Value is also another important factor to consider as it is one of the determining factor of any product or service.
What is a Product?
Anything that we see or don't see is known as product. A product is not needed to have utility and value. Just think about it? is it true? Yes. There could be a case. Consider a sugar factory, it is O.K. that it produces sugar product which has a utility and value but at the same time, various by-products are also produced. These by-products are discharged out from the factory. These by-products are also products which actually do not have utility and value.
If possible, these by-products can be put into use. If not possible, they have to be removed out. So whatever it is, these products can be seen, felt and touched. Hence these are called as
Visible or Material Products.
Similarly when we think about something, it is also a product. Do you believe this? For example, if we need to reproduce a book, we would think about copyright of the book. If we have the copyright of the book, We will do it and enjoy. So here the copyright of the book is also a product that cannot be seen or touched but can be felt. These are known as Immaterial or Invisible Products.
So We can say that everything is a product. But in this human world, anything whether it is visible or invisible product that have utility are welcomed. So Utility is an important determining factor of a product or service. If utility is more and price is low, then the product will be sold like hot cakes. For example, consider air which is free(price is zero) and it's utility is infinity. So the air is a free good and human beings will continuously use it. In fact, it is a natural gift. Who can sell this?
So as far as possible, for a product to be sold more, it's utility should be more and price should be low. So anything that has utility and value is known as product. For example, if we consider the product DVD Player,
Product - DVD Player
Utility - Playing CDs and DVDs.
Value - $60.
What is a Service?
Service means an act performed by one person for the benefit of another. Every service provides utility to the receiver. It is also known as non-material goods. Ex. acts of lawyer, doctor, teacher, dancer, actor etc. So the services also have utility and value. For example, if we have a cellphone which is not functioning well, then we will go for repair services. In such a case,
Service - Repairing the cellphone and making it to work.
Utility - Getting back the functionality of the cellphone.
Value - The charge collected by the service personnel.
What is Standard of Living and how buying improves Standard of Living?
It refers to the necessaries, comforts and luxuries that go into consumption pattern of a particular class of people. Every person enjoys a certain income and a certain status in a society. According to the status and income he prepares his scheme of expenditure. His expenditure on the consumption of certain articles of necessaries, comforts and luxuries, is said to consitute the standard of living. So we can say that it is the common habits of a man with reference to spending and working.
For more information on how to improve our standard of living, visit and read No Question that the Materialism or Buying brings Wealth and Standard of Living.
About Author
I am interested in encouraging people to buy more goods and services so that they will improve their wealth and standard of living. For more information Please visit http://www.freewebs.com/kaviaras
Article Source:
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