Product Classification

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product classification

Products can be classified on the basis of three characteristics: durability, tangibility, consumer or industrial use. 1. Durability and tangibility. Non-durable goods are tangible normally consumed in one or a few uses (such as food, soap and clothing). Because these goods are consumed quickly and purchased frequently, the appropriate strategy is to make it available in many locations, charge a small markup and advrtise heavily to induce trial and build preference. Durable goods are tangible goods that survive many uses (automobiles, furniture, appliances and jewelry). These normally require more personal selling and service, command a higher margin, and require more seller guarantees. Services are tangilble, inseperable, variable, and perishable products, so they usually require more quality control,supplier credibility, and adaptability. 2.Consumer-goods classification. Classified according to consumer shopping habits, these products include convenience goods, shopping goods, specialty goods and unsought goods. Convenience goods are usually purchased frequently, immediately, and with little effort. Mostly, convenience goods come in the category of nondurable goods such as fast food, newspaper and cigarettes, with low value. The goods are mostly sold by wholesalers to make them available to the consumers in good volume. Shopping goods are goods that the customer, in the process of selection and purchase, compares on the basis of suitabilty, quality, price and style. They are costlier than convenience goods and are durable in nature. Shopping goods companies usually try to set up their shops and show rooms in active shopping areas to attract customer attention and their main focus is to do lots of advertising and marketing to become popular. Example of shopping goods are clothing items, televisions, radios, foot wears and home furnishing. Specialty goods are goods with unique characteristics or brand identification for which a...
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