Classification of

Products
Product Classification
• Can be done in a variety of perspectives

 Consumer-Goods Classification
• Classified on the basis of shopping habits

 Durability and Tangibility

Industrial-Goods Classification
• Classified in terms of their relative cost and how they enter the
production process.
Consumer Product Classification
• Convenience Goods
• Inexpensive, frequently purchased.
• Little effort needed to purchase them.
• Staples, Impulse and emergency goods.
• Shopping Goods
• Not as frequently as convenience products
• Costly
• Consumer does research before purchase.
• Specialty Goods
• Unique features
• Consumer is prepared to pay a premium price.
• Unsought Goods
• Those good that consumers do not know or
• Doesn’t think of buying.
Durability and Tangibility
• Nondurable Goods
• Tangible goods consumed in one or few uses
• Purchased frequently
• Strategy : availability , low priced , heavily advertised
• Durable Goods
• Tangible goods that survive many uses
• Require more personal selling and service
• Higher margins and requires seller guarantee
• Services
• Intangible product
• Requires more quality control and credibility
Industrial-Goods Classification
• Materials and Parts

Raw Materials Farm Products

Manufactured Natural
materials and parts
Products
• Materials and Parts

Raw Materials Farm Products

Manufactured Natural
materials and parts
Products
• Materials and Parts

Raw Materials Component

materials

Manufactured Component
materials and parts
Parts
• Materials and Parts

Raw Materials Component

materials

Manufactured Component
materials and parts
Parts
• Capital Items
• Installations
• Equipment
• Supplies
• Maintenance and repair items
• Operating supplies
• Business Services
• Maintenance and repair services
• Business advisory services
Thank You