Classification of Products

Products can be classified into two categories; viz., Consumer Products and Industrial Products. 

Anything of value offered by an organisation to the market for satisfying their want or need is known as a Product. The concept of product not only relates to the physical product, but also the benefits offered by the product. For example, while purchasing a washing machine, a consumer does not only look for its physical qualities but also some intangible factors such as its brand name, guarantee offered, company’s image, status symbol, etc. Hence, it can be said that a product is a mixture of tangible and intangible features, a consumer can exchange for a value in return to satisfy their needs.

The three types of benefits provided by a product to the customers are; namely, Psychological benefits, Functional benefits, and Social benefits. For instance, Sayeba purchased a wall painting from an art gallery arranged by an NGO. After making the purchase the functional benefits gained by her will be the decoration of her living room. Similarly, she will get psychological benefits in the form of satisfaction with her interest in art and creativity. However, as she has purchased the painting from an NGO’s art gallery, the money will be used as a donation which provides her social benefits in the form of acceptance and a good image in the eyes of people.