Consumer Products v/s Industrial Products
| Basis | Consumer Products | Industrial Products |
|---|---|---|
| Meaning | The products which directly satisfy the wants and needs of a consumer are known as Consumer Products. | The products used by the organisations as inputs for the production of other products are known as Industrial Products. |
| Buying Motive | Consumer products are purchased with the motive of personal consumption. | Industrial products are purchased with the motive of manufacturing other products. |
| Nature of Buyers | The buyers of consumer products are more impulsive and spend less time and effort in comparing different brands available in the market. | The buyers of industrial products are more rational and spend more time and effort in comparing different brands available to them. |
| Factors affecting Purchase Decision | Advertisements and Sales Promotion Schemes affect the purchasing decision of the buyers. | Technical factors, cost, and goodwill of the supplier affect the purchasing decision of the buyers. |
| Number of Buyers | The number of buyers of consumer products is large. | The number of buyers of industrial products is limited. |
| Nature of Demand | As these products satisfy the wants of consumers directly, they have a direct demand. | As these products indirectly satisfy the wants of consumers, they have a derived demand(derived from the demand for consumer products). |
| Geographic Distribution | The demand for consumer products is widely spread. | The demand for industrial products is concentrated at fixed locations. |
| Channel Levels | These products have longer channels of distribution. | These products have shorter channels of distribution. |
Classification of 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.
Table of Content
- Classification of Products
- 1. Consumer Products
- Convenience Products v/s Shopping Products v/s Speciality Products
- 2. Industrial Products
- Consumer Products v/s Industrial Products
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