How are products classified?
(a) Durability and Tangibility:
(i) Durable Goods – Durable goods are tangible goods that normally survive many uses such as refrigerators, TVs.
(ii) Non-Durable Goods – Non-durable Goods are tangible goods normally consumed in one or a few uses, such as soft drinks or soaps. Since these goods are frequently purchased, they need to be heavily distributed and advertised to build a preference over competition.
(iii) Services – Services are intangible, inseparable, variable and perishable products, for example, a haircut, legal advice etc.
(b) Consumer Goods:
This classification is done on the basis of shopping habits.
(i) Convenience goods are purchased frequently, immediately and with a minimum effort, for example, soft drinks, tissue rolls, soaps etc.
(ii) Shopping goods are the goods that the consumer characteristically compares on bases like suitability, quality, price, style etc., for example, clothes, kitchen appliances etc.
(iii) Speciality goods have unique characteristics or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort, for example, Cars, men’s suitings etc.
(iv) Unsought goods are those goods that the consumer does not know about or does not normally think of buying, for example, Encyclopedias, smoke detectors etc.
(c) Industrial Goods:
Classification is done on the basis of their relative cost and how they enter the production process.
(i) Materials and parts are the goods that become a part of the manufacturer’s product completely, for example, raw materials like wheat, cotton, jute, petroleum etc., and manufactured materials are parts like iron, yarn, tyres, small motors etc.
(ii) Capital items are long-lasting goods that facilitate in developing or managing the finished product, for example, factories, offices, generators, drill presses.
(iii) Supplies and business services are short-term goods and services that facilitate in developing or managing the finished product, for example, paint, nails, brooms, coal, writing paper, repair services etc.
