Products are classified on different basis. Explain consumer goods in detail.
- Consumer Products
Products which are purchased by the ultimate consumers, for the direct satisfaction of their needs and wants, are consumer products. They are classified on the basis of two important factors:
(a) Shopping efforts involved.
(b) Durability of products.
On the basis of durability, we can classify consumer goods into three categories, viz:
(i) Non-durable Products The main features of non-durable products are:
(a) These goods are consumed in a single act of consumption.
(b) They are available at convenient location.
© Their unit price and profit margin is low. -
(d) They need to be heavily advertised.
(e) e.g. cosmetics, stationery, petrol, milk, etc. .
{ii) Durable Products The main features of durable products are:
(a) These goods last for a long period of time and survive many uses.
(b) They are usually available in central markets.
© Their unit price and profit margin is high.
(d) They require greater personal selling efforts, guarantees and after sales service.
(e) e.g. furniture, jewellery, electronics, etc.
{iii) Services The main features of services are:
(a) They^are intangible in nature as they have no physical appearance, colour, shape or size.
(b) It is inseparable from its source. Therefore, it cannot be stored.
© They are highly variable and differ from one service provider to another.
(d) They provide social and psychological benefits to their users.