Introduction: The classification of physical products (goods) is essential in business as it allows for the creation of strategies to facilitate their movement within the marketing system. There are two main categories: consumer goods and industrial goods. This article concentrates on categorizing consumer goods.
Consumer Goods: Consumer goods are items bought from retail stores for personal, family, or household purposes. They can also be defined as products meant for individual use or consumption rather than organizational, corporate, or business use.
Consumer goods are often classified into subcategories based on purchase method or consumer buying habits. These subcategories consist of Convenience Goods, Shopping Goods, Exclusive or Specialty Goods, and Non-Sought Goods. Another way to distinguish consumer goods is by durability. Durable goods are items that have a long lifespan, like furniture and garden tools. On the other hand, non-durable goods are products that are quickly consumed or become outdated, such as food, school supplies, and disposable cameras.
Convenience goods, also referred to as items that buyers desire to purchase effortlessly, are typically nondurable goods of low value that are frequently bought in small quantities. Alternatively, they can be described as goods bought with minimal effort, as buyers are already aware of the product’s characteristics before shopping. The consumer does not wish to spend time searching for additional information (if they have previously purchased the item) and is willing to settle for a substitute rather than having to visit multiple stores.
These goods can be categorized into two subcategories: staple, impulse, and emergency goods. Staple convenience goods are essential items that buyers intend to purchase before entering a store, including milk, bread, and toilet paper. Impulse items are other convenience goods that are bought without prior planning, such as candy bars, soft drinks, and tabloid newspapers. Emergency goods are items bought out of immediate need, such as an umbrella during a rainstorm, a tire to replace a flat, or aspirin for a headache.
Producers strive to achieve widespread distribution for convenience goods by utilizing wholesalers and making them available through various channels such as vending machines in offices, factories, schools, and other settings. These goods are strategically placed at high-traffic areas within stores, including checkout stands. Intensive distribution is necessary for convenience goods, as they need to be present in numerous outlets. It is essential to consider the extensive availability of convenience goods like newspapers or cups of coffee.
Vending machines are used to sell various convenience goods, such as newspapers, coffee, soda, and candy, in order to expand the availability of these products. On the other hand, shopping goods are items that consumers purchase after considering multiple stores or assortments, and making a deliberate decision. These goods are usually more expensive than convenience goods, bought less frequently, and are long-lasting. Factors like price, quality, style, and color typically influence the buying decision for shopping goods.
Televisions, computers, lawnmowers, bedding, and camping equipment are all examples of shopping goods. They can also be referred to as goods for which consumers lack sufficient information about product alternatives and their attributes. Consequently, consumers must gain further knowledge to make a purchase decision. The two main types of shopping goods include attribute-based and price-based. In the case of attribute-based shopping goods, consumers acquire information and assess various product features, warranty, performance, options, and other factors. The final purchase is made based on the product with the most favorable combination of attributes.
Sony electronics and Calvin Klein clothes are marketed as attribute-based shopping goods, while Hyundai Automobile and store-brand clothes are marketed as price-based shopping goods. Consumers will exert effort in searching for information because shopping goods are bought infrequently. To establish stores specializing in these goods, a fundamental strategy is to locate near similar stores in active shopping areas, which requires selective distribution. Ongoing strategies for marketing shopping goods include heavy use of advertising in local media, such as newspapers, radio, and television, often done cooperatively with the manufacturers. Specialty goods, on the other hand, are unique or unusual items that buyers are willing to exert considerable effort to obtain. These goods may or may not be durable and can be of high value.
They are different from shopping goods in that price is not the main factor. The things that make them special are often brand preference (such as a certain car make) or personal preference (like a food dish prepared in a specific way). Wedding dresses, antiques, fine jewelry, and golf clubs are also examples of these goods. They can also be described as goods that consumers are loyal to. Consumers are fully aware of these products and their attributes before deciding to buy.
Consumers of specialty goods are willing to go to great lengths and pay more in order to obtain their desired brand. They will not settle for substitutes and will only make a purchase if their brand is available. Producers and distributors of specialty goods prefer limited distribution, choosing retail outlets that can provide extensive advertising and personal selling for the product.
When selecting outlets, it is important to uphold a consistent image for both the product and store. The classifications of convenience, shopping, and specialty goods are determined by consumer buying habits. However, there may not always be a distinct distinction between these categories. As a result, an item can be seen as a convenience good for one person, a shopping good for someone else, or even a specialty good for another individual. To further illustrate this point, consider an individual who avoids spending time on shopping; they might view purchasing a pair of shoes as a convenience buy.
In contrast, different individuals may have different approaches to buying shoes. One person may make a purchase without much thought or comparison, considering the shoes as a convenience good. Another person may carefully consider and compare options before buying, classifying the shoes as a shopping good. Yet another person may have a preference for a specific brand or an unusual size, causing them to only buy shoes from a specific retail location, categorizing the shoes as a specialty good. References: •http://academic. brooklyn. cuny. edu •http://www. marketing. org. au •http://www. studymarketing. org •http://www. answers. com •http://www. learnmarketing. net •http://en. mimi. hu/marketingweb