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Classification of Products

The document classifies products according to their use, differentiation, and durability. According to use, products are either consumer goods which are purchased for direct consumption, or industrial goods which are used to produce other goods. Products are also classified as either undifferentiated goods which are identical, or differentiated goods which have distinguishing characteristics. Finally, products can be consumable and only provide short term benefit, semi-durable and provide months of benefit, or durable and last for years.

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345 views

Classification of Products

The document classifies products according to their use, differentiation, and durability. According to use, products are either consumer goods which are purchased for direct consumption, or industrial goods which are used to produce other goods. Products are also classified as either undifferentiated goods which are identical, or differentiated goods which have distinguishing characteristics. Finally, products can be consumable and only provide short term benefit, semi-durable and provide months of benefit, or durable and last for years.

Uploaded by

Unknown Wanderer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Classification of Products/Goods

According to Use: Consumer and Industrial Goods

Consumer goods are products that are purchased for consumption by the

average consumer. Alternatively called final goods, consumer goods are the end result of

production and manufacturing and are what a consumer will see on the store shelf. Example of

these are softdrinks, hamburgers, candy , cigarettes , and other similar items.

When classifies according to use, products/goods can either be consumer goods or industrial

goods.

CONSUMER GOODS

Industrial goods are purchased in order to make other goods, to serve as a raw material or

input in the production of other goods. Typical examples are aluminum which are used to

manufacture kitchen equipment and cans, or electronic cables and wires, which serve as electrical

conduits for home appliances, among others.

According to Differentiation: Undifferentiated and Differentiated Goods

Undifferentiated goods are products

whose physical characteristics are so identical, that would

be difficult, if not possible, to distinguish one purchased

from one vendor or another. Most undifferentiated goods

are products that are sourced from nature.

A typical example of undifferentiated goods is rock.

Most undifferentiated goods are products that are

sourced from nature.

Differentiated products are varied in their characteristics and features that they are readily

distinguishable from one another.The ability of manufacturers to successfully distinguish their

products from other competitors is called branding. Examples are local car manufacturers like

Toyota, Nissan Sentra, Fortuner and other similar cars.


INDUSTRIAL GOODS

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Branding provides a product or service a unique distinguishing name, logo, symbol or image

which is used to differentiate it from other similar name, logo, symbol or image which is used to

differentiate it from other similar products and services.

According to Durability: Consumable, Semi-Durable and Durable Goods

Based on durability, products are either consumables, semi- durables or durables.

Durability refers to the length of time a consumer can derive benefit from the product or good

purchased.

A Consumable is a product whose benefit can only be used by a consumer for only a short period

of time, sometimes only a few minutes. Consumables non- edible items such as detergents and

toiletries are considered consumables. The benefit can drive from soap, for example (for cleaning

oneself) may only last a few days.

CONSUMABLE PRODUCTS/GOODS

DIFFERENTIATED PRODUCTS

Semi- durable

provide benefits to the consumer for a longer

period of time, usually spanning several

months.

Examples of semi-durables are clothes, shoes,

belts, and jackets.

Durability refers to the length of time a consumer can derive benefit from the product or good

purchased.

Durable are product that are manufactured to last a long time. They are capable of providing

consumers with years of beneficial use. Usually expensive and many, therefore require an

augmented product to market them effectively. Examples of durable products are automobiles,

houses, major household appliances, etc.

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