Business Degree Certification Practice Test

Which utility is NOT created by channels of distribution?

1. Time

2. Place

3. Form

4. Possession

The correct answer is: Form

Channels of distribution play a critical role in the marketing process by ensuring that products move from producers to consumers efficiently. The primary utilities created by effective channels of distribution include time, place, and possession. Time utility refers to making products available to consumers when they want them. Place utility is about providing products at locations that are convenient for consumers. Possession utility is the value gained from owning the product, which is facilitated by the transfer of ownership through channels. Form utility relates to the actual physical or functional attributes of a product, which are typically determined during the production process, rather than through distribution. This makes form utility distinct from the others, as it focuses on the product itself rather than the distribution or delivery aspect. Therefore, the utility that is not created by channels of distribution is form utility.