DOI: https://doi.org/10.32515/2663-1636.2019.2(35).199-208

Development of Theoretical Approaches to Quantitative Measurement of Utility as an Economic Category

Iryna Zhurylo, Mykhailo Poltavets

About the Authors

Iryna Zhurylo, Associate Professor, PhD in Economics (Candidate of Economic Sciences), Associate Professor of the Department of Economics and Entrepreneurship, Central Ukrainian National Technical University, Kropyvnytskyi, Ukraine, E-mail: zhuriloiv@gmail.com

Mykhailo Poltavets, Teacher of, Department of Economics and Entrepreneurship, Central Ukrainian National Technical University, Kropyvnytskyy, Ukraine, E-mail: mnp2610@gmail.com

Abstract

The article is devoted to the study of the labor product usefulness as an economic category. An analysis of known utility theories has shown that most of them deny the possibility of utility direct quantitative measurement because they are based on a study of the consumption process of consumer goods. We have proven that the market of industrial products is characterized by a more stable structure of needs. That‘s why, it is possible and necessary to apply quantitative models of utility to such products. We consider the closest authors to the truth, who have linked the utility with the quality and cost of product consuming. However, relevant studies provide only a statement of the discussed relationship, and need further development. The product usefulness has strategic direction for the manufacturer and should be the basis of the relevant business idea. In order to formulate a business idea that will allow the manufacturer to count on success, it is necessary to discover a new way of creating a certain utility that has value for the consumer, and create a combination of special abilities that will achieve that utility. During the early stages of design, it is necessary to know at the expense of what indicators and, accordingly, the parameters of the product should be provided the desired value of its usefulness. That is, both of the compositional and decompositional approaches should be applied to modeling the product usefulness. Consideration of the variations in the quality and usefulness of the product has shown that they can be both in the forward and in the feedback. Utility embodied in a particular product is only optimal to the extent that quality meets a specific need. The decrease in the usefulness of the product in operation occurs both in the production circumstances of low-quality, and products with unreasonably high operating parameters. Since both are unjustifiable excess costs. The optimum combination of quality and usefulness of the product provides a high level of its competitiveness.

Keywords

utility, quality, competitiveness, price of consumption, industrial production

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