The classification of goods (physical products) is essential to business because it provides a basis for determining the strategies needed to move them through the marketing system.
The two main forms of classifications are consumer goods and industrial goods. We are interested in this paper to elaborate more on Consumer Goods Classification only. Consumer Goods:
Consumer goods are defined as goods that are bought from retail stores for personal, family, or household use. Or, they can also be defined as:
Products intended for use or consumption by individuals, as opposed to organizations, companies or businesses. Consumer goods are generally divided into subcategories according to the method by which they are purchased or on the basis of consumer buying habits into: Convenience Goods, Shopping Goods, Exclusive or Specialty Goods, and Non Sought Goods. Consumer goods can also be differentiated on the basis of durability. Durable goods are products that have a long life, such as furniture and garden tools. Nondurable goods are those that are quickly used up, or worn out, or that become outdated, such as food, school supplies, and disposable cameras.
Convenience goods are items that buyers want to buy with the least amount of effort, that is, as conveniently as possible. Most are nondurable goods of low value that are frequently purchased in small quantities. Or they can be defined as those goods purchased with a minimum of effort, because the buyer has knowledge of product characteristics prior to shopping. The consumer does not want to search for additional information (because the item has been bought before) and will accept a substitute rather than have to frequent more than one store. These goods can be further divided into two subcategories: staple, impulse & emergency goods. Staple convenience goods are basic items that buyers plan to buy before they enter a store, and include milk, bread, and toilet paper. Impulse items are other convenience goods that are purchased without prior planning, such as candy bars, soft drinks, and tabloid newspapers. Emergency goods are items purchased out of urgent need, such as an umbrella during a rainstorm, a tire to replace a flat, or aspirin for a headache. Since convenience goods are not actually sought out by consumers, producers attempt to get as wide a distribution as possible through wholesalers. To extend the distribution, these items are also frequently made available through vending machines in offices, factories, schools, and other settings. Within stores, they are placed at checkout stands and other high-traffic areas. Convenience goods need intensive distribution. The product has to be in millions of outlets. We must think of how many places we can purchase a newspaper or a cup of coffee. Many convenience goods are sold in vending machines to increase the number of outlets. For example, products sold in vending machines include newspapers, coffee, soda, and candy
Shopping goods are purchased only after the buyer compares the products of more than one store or looks at more than one assortment of goods before making a deliberate buying decision. These goods are usually of higher value than convenience goods, bought infrequently, and are durable. Price, quality, style, and color are typically factors in the buying decision. Televisions, computers, lawnmowers, bedding, and camping equipment are all examples of shopping goods. Or they can be defined as those goods for which consumers lack sufficient information about product alternatives and their attributes, and therefore must acquire further knowledge in order to make a purchase decision. The two major kinds of shopping goods are attribute-based and price-based. For attribute-based shopping goods, consumers get information about and then evaluate product features, warranty, performance, options, and other factors. The good with the best combination of...