CHAPTER 3

CLASSIFICATION OF CONSUMER GOODS

- Are classified as convenience, shopping, specialty, or unsought.
Four (4) categories of consumer goods:
1. Convenience Goods
2. Shopping Goods
3. Specialty Goods
4. Unsought Goods
CONVENIENCE GOODS
- Are those which the consumer already knows and buys with a minimum of comparison
and buying effort.
Three (3) categories of convenience goods
1. Staples Goods
o Are bought by consumers regularly.
2. Impulse goods
o Are bought by consumers without planning or search effort.
3. Emergency Goods
o Are bought by consumers when there is an urgent need of them.
SHOPPING GOODS
- Are consumer goods for which consumers feel the need to compare, seek additional
information, examine the product or reassure themselves about the products quality,
price, style, suitability or value before making the purchase.
Two (2) types of shopping goods:
a. Homogeneous or uniform shopping goods are evaluated by consumers as similar
in quality and features but different in price.
b. Heterogeneous or non-uniform goods have identifiable product differences.

SPECIALTY GOODS
- Are consumer goods for which consumers have a strong brand preference and are
willing to spend time and effort in finding the chosen brand.
UNSOUGHT GOODS
- Are those which consumers are not yet aware of or which they have no immediate need
for.
CLASSIFICATION OF INDUSTRIAL GOODS
INDUSTRIAL GOODS
- Are also called organization or business goods.

Five (5) categories of industrial goods:

1. Raw Materials
2. Manufactured Parts and Materials
3. Installations
4. Accessory Equipment
5. Operating Supplies
RAW MATERIALS
- Are industrial goods that are processed part of another product.
Two (2) categories of raw materials:
1. Natural products (minerals, oil, sand, and forest and sea products)
2. Agricultural products (eggs, milk, rice, wheat, fruits, livestock)
MANUFACTURED PARTS AND MATERIALS
- Include component parts and component materials.
Component parts enter the finished product complete and without any change in its form.
Component materials are usually processed further to become another finished product.
INSTALLATIONS
- Are major capital items necessary for the manufacture of a final product.
ACCESSORY EQUIPMENT
- Has substantial value and is used in an organizations operations.
OPERATING SUPPLIES
- Are low-priced goods with short lifespan that help in an organizations operations without
becoming part of the finished product.

Prepared by:
KAREN ANN B. CAMANDE
BSBA - 2