Classification of Products

Product Classification

• Can be done in a variety of perspectives

Consumer-Goods Classification• Classified on the basis of shopping habits

Durability and Tangibility

Industrial-Goods Classification• Classified in terms of their relative cost and how they enter the

production process.

Consumer Product Classification

• Convenience Goods• Inexpensive, frequently purchased.• Little effort needed to purchase them.• Staples, Impulse and emergency goods.

• Shopping Goods• Not as frequently as convenience products• Costly• Consumer does research before purchase.

• Specialty Goods• Unique features• Consumer is prepared to pay a premium price.

• Unsought Goods• Those good that consumers do not know or• Doesn’t think of buying.

Durability and Tangibility• Nondurable Goods• Tangible goods consumed in one or few uses• Purchased frequently• Strategy : availability , low priced , heavily advertised

• Durable Goods• Tangible goods that survive many uses• Require more personal selling and service• Higher margins and requires seller guarantee

• Services• Intangible product• Requires more quality control and credibility

Industrial-Goods Classification• Materials and Parts

Raw Materials

Manufactured materials and parts

Farm Products

Natural Products

• Materials and Parts

Raw Materials

Manufactured materials and parts

Farm Products

Natural Products

• Materials and Parts

Raw Materials

Manufactured materials and parts

Component materials

Component Parts

• Materials and Parts

Raw Materials

Manufactured materials and parts

Component materials

Component Parts

• Capital Items• Installations• Equipment

• Supplies• Maintenance and repair items • Operating supplies

• Business Services• Maintenance and repair services• Business advisory services

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