In commerce and marketing, a product is any item, service, or system created to satisfy a customer’s need or want. Products generally fall into two main categories: consumer products (bought by everyday individuals) and industrial products (bought by businesses for production or operations). Consumer Products
These are goods and services purchased by individuals for personal, family, or household use. They are categorized by how people shop for them:
Convenience Products: Inexpensive items purchased frequently with minimal effort, such as shampoo, milk, or candy.
Shopping Products: Higher-ticket items where customers compare quality, price, and style before buying, such as furniture or major appliances.
Specialty Products: High-end goods with unique characteristics or brand identification that buyers make special efforts to find, such as luxury cars or designer apparel.
Unsought Products: Items consumers do not normally think about buying until a specific need arises, such as life insurance or fire extinguishers. Industrial Products
These are goods bought by companies to process further or use in conducting a business.
Materials and Parts: Raw materials like crude oil or lumber, and manufactured parts like microchips or tires.
Capital Items: Major long-term assets that aid in production, including installations (factories, offices) and accessory equipment (computers, forklifts).
Supplies and Services: Operating items like printer paper or cleaning supplies, and business services like legal counsel or maintenance. Tangible vs. Intangible Formats
Products can also be classified by how they are delivered to the market:
Physical Goods: Tangible items you can physically touch and own, such as electronics, clothing, or vehicles.
Digital Products: Non-physical software or media accessed via electronic devices, like mobile apps, streaming services, or e-books.
Services: Intangible actions or experiences provided by a business, such as airline travel, banking, or medical checkups.
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