2. • Consumer Products
The products which directly satisfy the wants and needs of a
consumer are known as Consumer Products. For instance, soap,
clothes, bread, jam, butter, etc. Consumer products are used by
consumers for their personal needs. These products can be further
classified into two categories: On the Basis of Durability and On
the Basis of Shopping Efforts.
CLASSIFICATION OF PRODUCTS
3. • On the Basis of Durability
• Durable Products
The goods that can be used for a long period of time are known
as Durable Products. For example, sewing machines, washing
machines, refrigerators, air conditioners, etc. The durable goods
include higher profit margins for the producer and needs greater
personal selling efforts and various after-sales service by the
organisation.
Example: Home Appliances, Medical Equipment
4. • Non-durable Products
The goods that can be consumed for a short period of time (one or
few uses only) are known as Non-durable Products. For
Example: soap, shampoo, toothpaste, biscuits, etc. These
products need heavy advertising and have less profit margin.
5. • Services
The activities, satisfaction, or benefits offered by an organisation
for sale are known as Services. For example, services offered by a
CA, teacher, doctor, etc. Services are intangible in nature, which
means that we cannot see, touch, or feel them. They are also
inseparable from their source and cannot be stored because of
their perishability. Another feature of services is that they are
highly variable because the quality and experience gained by a
consumer vary with the person providing them.
6. • On the Basis of Shopping Efforts
• Convenience Products
The products which are purchased immediately, frequently, and
with the least effort and time are known as Convenience
Products. Convenience goods require minimum shopping
effort. For Example, newspapers, salt, matchbox, medicines,
etc.
7. • Shopping Products
• The products in which consumers devote considerable effort and
time in shopping are known as Shopping Products. For these
products, the buyer first compares the price, style, quality, etc.,
of different brands at different stores before making the final
decision of purchase. For Example: shoes, clothes, mobile phones,
jewellery, etc.
8. • Speciality Products
The products with some special features for which the consumers
make special efforts, while purchasing them are known
as Speciality Products. Demand for speciality products
is relatively inelastic. It means that even though the price of
speciality products rises, their demand does not reduce. For
example, antique paintings, exotic perfumes, expensive watches,
branded sneakers, etc.
9. • Industrial Products
The products used by the organisations as inputs for the production of
other products are known as Industrial Products. For example,
lubricants, tools, equipment, machines, etc.
The number of buyers of industrial products is limited as compared to
the buyers of consumer products. For example, buyers of wheat are
less as compared to flour.
10. • Industrial Products can be classified into three categories; namely,
Materials and Parts, Capital Items, and Supplies and Business
Services.
• Materials and Parts
The goods which enter the products of a manufacturer completely are
known as Materials and Parts. These goods are of two types; namely,
Raw Material and Manufactured Material and Parts.
Raw Material: It consists of farm products such as sugarcane, cotton,
etc.
Manufactured Material and Parts: It consists of component materials
such as iron, glass, etc., and other components parts, such as
batteries, tyres, etc.
11. • Capital Items
The fixed assets which are used by an organisation for the
production of finished goods are known as Capital Items. For
example, fax machines, laptops, etc.
12. • Supplies and Business Services
The goods and services which are used by organisations to
facilitate the development and management of the finished
products are known as Supplies and Business Services. For
example, maintenance items such as paint, nails, etc., and
operating supplies, such as writing paper, lubricants, etc.
