Consumer Goods vs Industrial Goods
Physical products or goods have been classified into two separate categories, consumer goods and industrial goods. The classification or distinction between these two types of goods is necessary in order to determine different efficient strategies which are required to help in moving the products through the marketing system.
The goods which are bought for household use, personal use, or family use from retail stores are called “consumer goods.” The consumers have certain buying habits, and based on these habits the consumer goods are divided into three different subcategories: shopping goods, specialty goods, and convenience goods. The consumer goods can also be differentiated or categorized into durable and non-durable goods. Durable goods are goods which have longer durability such as furniture, etc. whereas, non-durable goods include food, supplies for school, etc.
Convenience Goods- Goods which the consumer wants to buy with maximum convenience are mostly non-durable, bought in small quantities, are of low value, and frequently purchased are called “convenience goods” like milk, bread, etc. These goods which are planned buys are called “staple goods” whereas goods like newspapers, candies, etc which are bought impulsively and were not planned are called “impulse goods.”
Shopping goods- The goods which are of higher value, purchased infrequently after a lot of comparing and deliberation by the consumer are called “shopping goods” like televisions, refrigerators, etc.
Specialty goods- Goods which are special for a consumer for which he has planned a lot and wants at all costs are called “specialty goods” like clothing of a special brand, automobile of a particular brand, jewelry, etc.
Goods which are bought by companies to produce other products which are sold later are called “industrial goods.” These goods can be directly or indirectly used in the production of goods which are sold at retail. Industrial goods are classified according to their usage instead of consumer habits. The durable goods are called “capital items” as they are of very high values, and non-durable goods are called “expense items” and are usually used within a year. They have been categorized into five subcategories: industrial supplies, installations, fabricated materials and parts, accessory equipment, and raw materials.
Industrial supplies- These include frequently bought expense items like computer paper, office supplies. Light bulbs which help in the production of a final product are called industrial supplies.
Installations- Capital items used directly in making other goods are called “installation goods” like machine tools, conveyor systems, commercial ovens, etc.
Fabricated parts and materials- Goods which are used in a final product without processing are called “fabricated parts” like batteries, spark plugs, etc. used in automobiles. Items which require processing before using in final products are called “fabricated materials” like steel, fabric for upholstery, etc.
Accessory Equipment- Accessory equipment are capital items which have a shorter life and are less expensive than installations like hand tools, desk computers, etc.
Raw materials- Products bought in their raw form like crude oil, iron etc which need to be processed before producing any goods are called “raw materials.”
Industrial goods and consumer goods cannot be clearly differentiated from each other. The differentiation depends on what the consumer intends to do with the product; thus, those goods which are ready and in final forms to be sold and are bought by the consumer to be resold can be classified as “consumer goods.” Whereas, if the goods are bought by a consumer for their own use to produce other products, they are called “industrial goods.”