Consumer ProductsA consumer product is any tangible product for sale that is used by a person or household for non-business purposes. Show
Learning Objectives Describe the characteristics of consumer products Key TakeawaysKey Points
Key Terms
A consumer product is generally any tangible product for sale that is used for personal, family, household or non-business purposes. To determine whether an item is a consumer product requires a factual finding, on a case-by-case basis. This will vary from one jurisdiction to
another. iPod Classic: The iPod Classic is an example of a consumer product. Thus, while consumer products may be seen as those not essential to life, they are nonetheless a large and crucial component of the US economy. The production and sale of consumer goods is an important sector of US GDP and creating
employment. Shopping ProductsConvenience goods are those that require little effort on the part of the buyer, while shopping goods require research and comparison. Learning Objectives Discuss the characteristics of shopping products as a specific type of
product Key TakeawaysKey Points
Key Terms
Classification of Consumer Goods: Convenience, Shopping and Specialty goods A classification long used in
marketing separates products targeted at consumers into three groups: convenience, shopping, and specialty. In this section, we will differentiate between convenience and shopping goods. Specialty goods will be discussed in the next section. Buying a Car: Most buyers invest a lot of time and effort into choosing the right car for them. An example of a shopping good is a car. Many buyers conduct extensive research into buying a car. Examples of questions that the buyer will ask themselves include: do I want to buy a new or a used
car? What is my maximum budget? Do I want an SUV or not? What brand has the best safety features? Which car is fastest? Which has the most storage space? Which has the best service? Which car looks best? There is an entire industry built around helping buyers decide what car is best for them. Specialty ProductsSpecialty goods are those considered unique by the buyer, who will go to great lengths to get them. Learning Objectives Illustrate
the characteristics and consumer motivation connected to specialty products Key TakeawaysKey Points
Key Terms
Speciality Products Specialty goods represent the third product
classification (after convenience and shopping goods). This classification system is based on the definition that convenience and speciality goods are both purchased with a predetermined pattern in mind. Louis Vuiton Flagship Store in Paris, France: People will travel miles to buy a Louis Vuiton bag even though there are plenty of options in their local department store. In general, it is desirable for marketers to lift their product from the shopping to the specialty class and keep it there. With the exception of price-cutting, the entire range of marketing activities are required to accomplish this goal. Pricing Price is not usually the primary factor in consumer
choice of speciality goods. Their prices are often higher than those of other articles serving the same basic need, but that lack their special characteristics. Unsought ProductsAn unsought good is one that is not actively sought out by a consumer, but is instead purchased due to fear, precaution, need, etc. Learning Objectives Discuss the concept of unsought goods as a type of product Key TakeawaysKey Points
Key Terms
Unsought Goods are goods that the consumer does not know about or does not normally think of buying. Purchases of unsought goods may arise due to danger or the fear of danger. Fire extinguisher: This is a classic example of an unsought good. The purchase of these goods may not be immediate and can be deferred. Hence, unsought goods require advertising and personal-selling support, and extensive marketing in other areas as well. Marketers have classified products on the basis of durability, tangibility, and use (consumer or industrial). Converting Unsought Goods to Sought Goods In the past, new products such as frozen food items were unsought—why buy frozen when you can
buy fresh?—until they were advertised extensively in innovative ways. Once the consumer is well-educated about the product, the good goes on to become a sought good. Business ProductsBusiness products are sold to other businesses, as opposed to convenience, shopping, and specialty products, which are sold to consumers. Learning Objectives Distinguish between the different types of business products Key TakeawaysKey Points
Key Terms
Business products represent a very important product
category, and in the case of some manufacturers, they are the only product sold. These are goods that are sold to other businesses, and used to produce other goods. Industrial products can either be categorized from the perspective of the producer and how they shop for the product, or from the perspective of the manufacturer, how they are produced and how much they cost. The latter criterium offers a more insightful classification for industrial products. Business Product: Lumber is an example of a business product. Parts are manufactured items that are ready to be incorporated into other products. For instance, the motors that go into lawn mowers and steering
wheels on new cars are carefully assembled when they arrive at the manufacturing plant. Since products such as these are usually ordered well in advance and in large quantities, price and service are the two most important marketing considerations. Licenses and AttributionsCC licensed content, Shared previously
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Which of the following products would be considered an unsought?Life insurance, products that are new and largely unknown, and prepaid funeral plans are all considered unsought products.
Which product would be considered an unsought good or service?Unsought Goods are goods that the consumer does not know about or does not normally think of buying, and the purchase of which arises due to danger or the fear of danger and lack of desire. The classic examples of known but unsought goods are funeral services, encyclopedias, fire extinguishers and reference books.
Which of the following is a specialty product?Sports cars, designer clothing, exotic perfumes, luxury watches, and famous paintings are all examples of specialty products.
Which of the following are meant for use in producing other products consumer products Staples Business products convenience products shopping products?BUSINESS PRODUCTS--products meant for use in producing other products. DERIVED DEMAND--demand for business products derives from the demand for final consumer products. CONVENIENCE PRODUCTS--products a consumer needs but isn't willing to spend much time or effort shopping for.
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