Consumer Goods

In Economics, consumer goods are any tangible commodities that are produced and subsequently purchased to satisfy the current wants and needs of the consumers.  In the chain of production, consumer goods are the ending results of production and manufacturing and are sometimes referred to as final goods. They are available in almost all shopping malls and supermarkets. Examples include food, clothing, electronics and appliances, vehicles, furniture, mobile phones, etc. Consumer goods are split into three different categories namely durable goods, nondurable goods, and services.

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What are Durable and Nondurable Goods?

Durable Goods as the name suggests are products that don't break easily. More specifically, durable goods are products that have a life expectancy of more than three years. Examples of durable goods include household appliances, furniture, machinery, property, technology, and automobiles. 

Non-durable goods, also known as consumables, are those consumer goods that are immediately consumed or have a life span ranging from minutes to three years. Examples of nondurable goods include gasoline, beverages, clothing, shoes, and many more.

Durable goods can be rented or purchased, whereas non-durable goods are generally not rented. Buying durable goods falls under the category of “demands of goods'' whereas buying non-durable goods falls under the category of “consumption of goods''.

The difference between durable and non-durable goods is based on whether the goods can be used only once or continuously over a period of more than three years. Moreover, durable goods in comparison to non-durable goods have considerably high purchase prices. 

Classification of Consumer Products

Convenience Goods

Convenience goods are those goods that are purchased frequently and easily without putting much effort into them. These goods include newspapers, magazines, grocery items, deodorants, toothpaste, etc. Consumers can buy these goods conveniently and in less time. 

Some of the highlighting features of the consumer goods are:

• No Plan to Purchase

• Purchased Frequently

• Price and Quality comparison is rare

• Relatively low priced

• Intense Competition

• Easily Available

Shopping Products

Shopping products refer to those goods that consumers purchase not very frequently and compare with other alternatives available in the market. Consumers demand time, planning, effort, and resources while purchasing these types of products.

Unlike convenient goods which are available easily, shopping products are distributed through selected channels or available in limited outlets. 

For example, while purchasing any clothing or apparel, the customers try different styles and compare their price, quality, and material before making a final decision to purchase. 

Some of the highlighting features of the shopping products are as follows:

• Infrequent Purchase

• Advance Purchase Plans

• Slow Buying Process

• Selective distributive channels

• Durable Goods 

Speciality Goods

Speciality goods are those consumer products that have unique characteristics and brand identification for which a particular group of buyers are willing to make a special purchasing effort. Some of the examples of speciality goods include brands of fancy products, luxury cars, professional photographic equipment, and highly fashionable clothing.  For example, consumers who prefer to purchase a product from a certain manufacturer will prefer to travel a considerable distance in order to purchase that particular product. 

Some of the highlighting features of the speciality goods are as follows:

• Brand Loyalty

• Comparison of Brand

• Preference of Particular Outlet

• Infrequent Purchase

• Inelastic Demand

Unsought Goods

Unsought goods are those types of consumer products that consumers are not mostly aware of or are aware of but do not normally think of purchasing. Unsought goods are fire extinguishers, reference books, new smartphones, etc. The need for unsought goods may not seem urgent to the consumer, and the purchase of these products is often deferred. This is frequently observed with life insurance, preventive car maintenance, cemetery plots, etc.  Due to this, unsought goods demand considerable marketing efforts in the form of advertising or personal selling to the consumers.

Some of the highlighting features of the unsought goods are as follows:

• Rarely Purchased

• No Purchase Plan

• High Price

• Lack of Desire

• Durable

Daily Use Consumer Goods List

Following is the list of examples of different types of consumer goods used regularly by the consumers:

• Toothpaste

• Soap

• Shampoos

• Cosmetics

• Clothes 

• Footwears

• Mobile Phones

• Bags

• Stationery

• Kitchenware

• Home appliances

• Eatables

• Drinks

Difference Between Consumer Goods and Producer Goods

In Economics, consumer goods are goods that are consumed for their consumption. Consumer goods, also known as finished goods, are the end result of processing and manufacturing and are ready to place on the shelf of a store for customers. 

On the other hand, producer goods also known as intermediate goods are goods that are used by producers in further manufacturing, processing, or resale. Producer goods either become a part of the final product or lose their distinct identity in the manufacturing process. 

The price of producer goods is not included while calculating Gross National Income (GNP) because it would result in the double-counting of goods and leads to an excessive estimation of GNP. On the other hand, the price of consumer goods is included in the summation of a country's GNP.

Conclusion

Through this article, we have learnt that consumer goods are goods bought for personal consumption by average consumers. Also known as final foods, consumer goods are the end result of production and manufacturing and are what consumers will observe stocked on almost all shopping malls and supermarkets.