How can consumer goods be classified




















She can purchase any of those models at her local hardware and department stores. In this example, Laurel's microwave is a homogeneous shopping product. Different from a convenience good, the microwave has a higher cost, and she expects it to last a few years. For these reasons, she compared models and found multiple ones that fit her criteria.

She chose the lowest price option to fit her needs. The marketing teams for these microwave companies may work to offer better quality products at equal or lesser value than their competitors to entice consumers.

They may create limited time offer campaigns to encourage customers to buy at certain times or feel like they are receiving a discount. Cody is going to purchase a family computer for his home. His children are ages 5, 9 and They plan to use the computer for gaming, schoolwork and video chatting with friends and relatives.

Cody's spouse plans to use the computer for work and shopping. Cody plans to use the computer to store his music, photo and video libraries. Cody researches three brands of laptops: Hardwired, Pathways and Papaya. Pathways models offer all the features he wants but may require additional hardware or software to optimize gaming and video chatting services. Papaya computers offer all the features he wants without additional equipment but cost five times more than Hardwired and twice as much as Pathways.

Cody chooses the Pathways laptop and plans to research the gaming accessories another time. In this example, Cody's laptop is a heterogeneous shopping product. While all the laptops serve the same purpose, their features are different, and some do not suit his needs.

The cost of the product factored into Cody's decision, but it was a less significant factor than the functionality of the laptop. The marketing teams for these laptops may focus on emphasizing unique features of their products versus those of competitors to show customers the quality of their purchases.

Price comparison is still a factor in this situation, but less so than it is with homogenous shopping products. Alli has been dreaming of buying a Guru purse since she was in middle school. There were ads for them in her favorite magazines and the popular girls in school carried them. Alli promised herself that after she got a full-time job, she would buy a Guru purse with her first paycheck.

After becoming an IT consultant, Alli purchased a mint-colored Guru backpack and matching wallet from their online store. In this example, Alli's purse is a specialty product. Alli does not want just any purse—she wants a specific brand. Her purchase was less about the product itself and more about the status that came with owning a product from that brand. Marketers for Guru purses may focus on showcasing the unique qualities of their brand. Unlike with heterogeneous shopping products marketed to a large group of consumers, the Guru team may focus on appealing to a fashionable niche market with higher income.

The strategy is less about selling the product itself and more about building an in-demand and elite brand. Molly is a freelance photographer and hair and makeup artist. She travels to meet her clients at their desired photo shoot locations, which sometimes include sites in nature with no power sources. Consumers typically spend time comparing quality, cost, and value before making a purchase. As you can see, there are factors to consider for every classification of product.

The more familiar you are with consumer habits and beliefs for that category, the more equipped you will be to market your product. There are four types of products and each is classified based on consumer habits, price, and product characteristics: convenience goods, shopping goods, specialty products, and unsought goods.

Like the Crest toothpaste example, convenience goods are products that consumers purchase repeatedly and without much thought. Once consumers choose their brand of choice, they typically stick to it unless they see a reason to switch, such as an interesting advertisement that compels them to try it or convenient placement at the checkout aisle. These products include gum, toilet paper, soap, toothpaste, shampoo, milk, and other necessities that people buy regularly.

To market a convenience good, you want to consider that most people will impulse buy these products. Placing your products near the checkout line at a store could be a good idea for these products — which is why you'll often find candy and gum at the front of a store.

Since most convenience products are priced low, cost and discounting isn't a major deciding factor when considering a purchase. I won't switch my toilet paper brand just to save a few cents. For convenience goods, brand recognition is key. With this in mind, you'll want to implement widespread campaigns to spread awareness of your company if possible.

For instance, Charmin , the toilet paper brand, is a widely recognized brand in the United States — likely in part due to the company's consistent and long-term advertising strategy, dating back to the 's with the invention of the character "Mr.

Whipple" who appeared on TV, print, and radio ads. Shopping goods are commodities consumers typically spend more time researching and comparing before purchase.

They can range from affordable items, like clothes and home decor, to higher-end goods like cars and houses. For instance, while you will buy toilet paper over and over again for the rest of your life, you'll likely only purchase a house a few times at most.

And, since it's an expensive and important purchase, you'll spend a good amount of time deliberating on it, attending different open houses, and comparing the pros and cons of your final selection. The same can be said for smaller products. Instead, you'll want to try it on, consider whether the price is worth it, and even get input from your loved ones.

It's important your marketing materials demonstrate how your product differs from the competition, and the unique value it provides consumers. Price also plays a role in this product type, so the promotion of discounts and sales can attract consumers toward your brand. A specialty good is the only product of its kind on the market, which means consumers typically don't feel the need to compare and deliberate as much as they would with shopping products.

When marketing a specialty good, you don't necessarily need to spend too much time convincing consumers that your product is different from competitors. They already know already. Instead, focus on how your products are constantly innovating and improving. This will ensure your customers will remain loyal to your brand. For instance, if Apple stopped making impressive improvements on their iPhones and promoting new features, I might consider switching brands.

But since they've continued to impress me over the years, I've continued to purchase from them. Finally, unsought products — goods that people aren't typically excited to buy.

Good examples of unsought goods include fire extinguishers, batteries, and life insurance. People will typically buy an unsought good out of a sense of fear or danger. For instance, you wouldn't go on the market looking for the "new and best" fire extinguisher.

You'd only purchase one due to the fear of a potential fire. Alternatively, some unsought goods, like batteries, are bought simply because the old ones expired or ran out. When marketing an unsought good, focus on reminding consumers of the existence of your product, and convincing consumers that purchasing your product will leave them with a better sense of security. For instance, Duracell's Beach x Bear commercial encourages viewers to remember the importance of batteries in life-threatening situations, like impending bear attacks or when using a metal detector.

For example Lawyers and Accountants provide speciality services. In the UK consumers purchasing items are protected by the Consumer Rights Act which came into force on the 1st of October ; Purchases made prior to this date are controlled by the Sale Of Goods Act for goods and the Supply of Goods and Services Act for services.

The Consumer Rights Act protects goods, services and digital content bought by consumers. It does not provides protection rights for purchases undertaken in the course of business. Goods protected by the Consumer Rights Act must be of satisfactory quality, as described by the seller, fit for purpose and have to last for a reasonable length of time.

Consumers are entitled to reject faulty goods and request a full refund within 30 days of purchase. After this time period consumers will need to negotiate a resolution, e. Services protected by the Consumer Rights Act should be carried out with reasonable care and skill, within a reasonable time and at a reasonable price. To assess what is meant by reasonable the "reasonable man" test will be applied i. Considering the circumstances what would a reasonable man on the street deem to be reasonable?.

The 30 day rejection rule doesn't apply to digital content, instead consumers can request a repair, replacement, they may also be able to negotiate a partial refund.



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