Thoery of Market
Markets have traditionally classified products on the basis of characteristics:
3) Use (Consumer and Industrial).
The issue of consumer goods is most important in assessment of Gross Domestic Product (GDP), basically a yearly measurement of what is purchased (consumed), made, invested, and what is spent by the government. Economic analysts can parse out the different types of goods that are included in the GDP, and look at how each area is performing. So for instance, a decline in the sale of consumer goods would indicate people aren’t spending as much on most consumer items, which can include on food, automobiles, clothing, electronics, and a host of other things.
Any tangible commodity purchased by households to satisfy their wants and needs.
1. Consumer-Goods Classification:
The vast of goods consumers buy can be classified on the basis of shopping habits. We can distinguish among convenience, shopping, specialty and unsought goods.
1. Convenience Goods:
A category of consumer goods which are bought frequently, quickly and with a minimum of emotional involvement. Most are nondurable goods of low value that are frequently purchased in small quantities.
Examples: include tobacco products, soaps and newspaper.
Further, convenience goods can be sub-categorized into:
1) Staple Convenience Consumer Goods:
Goods which come under the basic demands of human beings are called staple convenience goods. For ex: milk, bread, sugar, toilet paper etc.
2) Impulse Convenience Consumer Goods:
Goods which are brought without any prior planning or which are brought impulsively are called impulse convenience goods.
For ex: potato wafers, candies, ice creams, cold drinks, magazines etc.
3) Emergency Convenience Consumer Goods:
A category of consumer goods consisting of items purchased quickly in necessity.
Ex: Umbrellas during rainy season, sweaters during winter season.
In shopping consumer goods, consumer do lot of selection and comparison based on various parameters such as cost, brand, style, comfort etc, before buying an item.
Shopping goods are purchased only after the buyer compares the products of more than one store or looks at more than one assortment of goods before making a deliberate buying decision. These goods are usually of higher value than convenience goods, bought infrequently, and are durable. Price, quality, style, and color are typically factors in the buying decision.
Consumer goods companies usually try to set up their shops and show rooms in active shopping area to attract customer attention and their main focus is to do lots of advertising and marketing to become popular.
Examples: Goods like clothing items, Televisions, computers, lawnmowers, bedding, camping equipment, home furnishing, jewelleries etc.
1. Homogeneous Shopping Goods:
Homogeneous shopping goods are those that are similar in quality but different enough in other attributes (such as price, brand image, or style) to justify a search process. This difference in characteristics is sufficient for the customer to justify a search for the item. After the consumer has decided on desired characteristics, he or she then looks for the most favorable price.
Examples: Televisions of Sony and Konka brands, their quality is same, both are delivering well picture but their price, brand image and style are different.
2. Heterogeneous Goods:
Heterogeneous shopping goods have product features that are often more important to consumers than price; examples include clothing, high-tech equipment, and furniture.
The item purchased must meet certain consumer-set criteria, such as size, color, or specific functions performed. When buying heterogeneous shopping goods, consumers often seek out information and advice from salespeople and other experts before purchasing the item.
Examples: computer hardware for computer engineers.
Goods which are very unique, unusual, and luxurious in nature are called specialty goods. Specialty items have characteristics that impel consumers to make special efforts to find them. Consumers often do not consider price at all when shopping for specialty products, which can include almost any kind of shopping product: Particular types of food, expensive imported cars, or items from a well-known fashion designer or manufacturer can all be considered specialty goods. Usually, specialty goods have a brand name or other type of distinguishing characteristic.
1. Specialty goods do not involve making comparisons.
2. Buyers invest time only to reach dealers carrying the wanted products.
3. Dealers do not need convenient locations; however they must let prospective buyers know their location.
Examples: antiques, jewelry, wedding dresses, cars, stereo components, mens suit etc
Unsought goods are products that consumers do not want, use, or even think about purchasing. An unsought shopping good could be a product that a consumer may not even know about—or knows about but has never considered purchasing. Unsought goods are requiring advertising and personnel-selling support. Unsought shopping goods are frequently brought to customers' attention through advertising, promotions, or chance. Sometimes they are something new on the market, such as digital telephones.
The classic examples of known but unsought goods are life insurance, plots, gravestones, enclycopedia.