Many employees in a company are tasked with understanding the buying habits and needs of customers. This helps companies change goals and come up with new products that will resonate with their customers. Regardless of where you work in a company, it can be helpful to understand the different types of consumer goods and how customer habits drive purchasing decisions.
In this article, we discuss what consumer goods are and highlight some examples of different types of consumer goods.
Table Of Content
1 What are consumer goods?
2 Differences between capital goods and consumer goods
3 types of consumer goods
3.1 Durable goods
3.2 Non-durable goods
3.3 Services
4 Categories of consumer goods
4.1 Convenience goods
4.2 Grocery goods
4.3 Unsought goods
4.4 Special items
What are consumer goods?
Consumer goods are products purchased by customers. They are tangible products at the end of the manufacturing cycle and include items on the shelf.
They are the end result of a long process of production and research and are specially manufactured to meet the convenience and supply demands of customers in the market.
While a lot of work goes into the process of planning and manufacturing consumer goods, and a product may be referred to by many different names in this process, when a customer sees an item on a shelf, it is referred to as a consumer good. .
Consumer goods can be fast-moving goods or even privately traded goods. However, regardless of the product type, they are the products used by the customers.
They are not products used to make additional products or items. Basically, consumer goods are always a type of consumer-based product. According To PadhakuLog What are the differences between Consumer & Industrial Goods? | Consumer vs Industrial Goods| CS Payal
Difference between capital goods and consumer goods
Capital goods and consumer goods refer to the process by which a product is used. While consumer goods refer to products used by individual customers, capital goods are specific assets needed to produce consumer goods.
Once a customer buys consumer goods, the product ends up with them. Capital goods, however, have a long life and will continue to be used in the production of additional consumer goods.
Capital goods generally refer to the buildings or manufacturing equipment needed to produce consumer goods. Capital goods can also include individual products, such as coal, metal, or other building materials used to make other products.
Another important difference is that businesses often focus on the return on investment (ROI) of capital goods, whereas sales of consumer goods are on the return. Consumer goods are not used repeatedly, meaning they have a single return.
Types of consumer goods
Knowing the different types of consumer goods can help you better understand how customers consider and make purchases for each type. These are the main types of consumer goods:
Durable goods
Durable goods refer to products with a longer lifespan, usually three years or more. This means that consumers buy them for a longer period of time, such as appliances, furniture, vehicles or household materials.
Durable goods are bought less often because they usually have a higher price tag, but in return, they last longer.
It also means that customers spend more time thinking about, and shopping, for them. They may compare durable goods to other similar brands or products, comparing prices and quality.
Non-durable goods
Non-durable goods refer to products with a shorter lifespan. This means that consumers buy them for the purpose of short-term use, including food, drink, clothing, or accessories.
Non-durable goods have a lifespan that is usually between a few minutes, and up to three years. Non-durable goods are often purchased because they usually run out in one or two uses. Customers are less concerned with the price of non-durable goods because they are usually relatively cheap and will be purchased repeatedly.
Service
Services or services are goods that do not produce an actual product, but a service. They are intangible products but are still considered consumer goods.
A service or service is an item sourced from a licensed artisan or individual, which prompts the customer to pay for the item.
This may include a car repair by a licensed mechanic or a haircut from a beautician. Other examples of service goods might include landscape design or fashion services after moving into a new home.
Categories of consumer goods
From the market point of view, consumer goods are also divided into product types based on the buying habits of customers. Consumer goods can be classified into:
Convenience goods
Convenience goods refer to consumer goods that are available for purchase on a regular basis. This may include water, pop, bread or detergent, and is a product manufactured to provide convenience to the customer.
Daily necessities are purchased frequently, sometimes monthly, daily or even weekly. There is little effort in buying convenience products. Most customers will buy it because they are used to buying it and it is easy to get when shopping in stores.
Convenience goods include the following characteristics:
- They are bought regularly.
- They are always available.
- They are usually at a low price point.
- They are considered non-durable goods.
Groceries
Grocery goods or shopping goods are products purchased by customers. They are usually higher-value products that require more thought and consideration. This may include a new TV, phone, vehicle or furniture.
Shopping products have the following characteristics:
- They are more rarely bought.
- They are quite available for purchase.
- They usually come at a higher price point.
- Their purchase requires some thought and consideration.
Unsought goods
Unsought goods are regularly available products that are targeted only at a small group of people. They are products that customers may not necessarily buy but may consider if they find information about the product. This may include life insurance or a vehicle warranty.
Unsought goods have the following characteristics:
- They are usually not considered until the product is in front of the customer.
- Products are usually foreign to customers.
- They are purchased as a one-time purchase.
- They are usually listed at a higher price point.
Special items
A specialty item refers to a collection of products intended for only a small group of buyers. They are usually products that cost more and are harder to find.
They are usually unique products and are not easy to manufacture. This may include classic cars or artwork by a favorite artist. Because they are harder to find, consumers may not care about price and will usually make a buying decision more quickly.
Special goods have the following characteristics:
- They usually require minimal consideration.
- They are not easily produced or available to consumers.
- They are more rarely bought.
- They are usually sold at a high price point.