Page 162 - Encyclopedia of Business and Finance

eobf_C 7/5/06 2:57 PM Page 139

Consumer and Business Products

CONSUMER AND puters, lawn mowers, bedding, and appliances are all
BUSINESS PRODUCTS examples of shopping products.
Because customers are going to shop for these prod-
The classification of products and services is essential to
ucts, a fundamental strategy in establishing stores that
business because it provides one of the factors for deter-
specialize in shopping products is to locate near similar
mining the strategies needed to move them through the
stores in active shopping areas. Promotion for shopping
marketing system. The two major classes are consumer products is often done cooperatively with the manufactur-
products and business products.
ers and frequently includes the heavy use of advertising in
local media, including newspapers, radio, and television.
CONSUMER PRODUCTS
Consumer products are products purchased for personal, Specialty Products. Specialty products are items that con-
family, or household use. They are often grouped into sumers seek out because of their unique characteristics or
four subcategories on the basis of consumer buying habits: brand identification. Buyers know exactly what they want
convenience products, shopping products, specialty prod- and are willing to exert considerable effort to obtain it.
ucts and unsought products.
These products are usually, but not necessarily, of high
Consumer products can also be differentiated on the value. This category includes both durable and non-
basis of durability. Durable products are products that durable products. Specialty products differ from shopping
have a long life, such as furniture and garden tools. Non- products primarily because price is not the chief consider-
durable products are those that are quickly used up or ation. Often the attributes that make them unique are
worn out, or that become outdated, such as food, school brand preference (e.g., a certain make of automobile) or
supplies, and disposable cameras. personal preference (e.g., a food dish prepared in a specific
way). Other items that fall into this category are wedding
Convenience Products. Convenience products are items dresses, antiques, fine jewelry, and golf clubs.
that buyers want to purchase with the least amount of Producers and distributors of specialty products pre-
effort, that is, as conveniently as possible. Most are non- fer to place their products only in selected retail outlets.
durable products of low value that are frequently pur- These outlets are chosen on the basis of their willingness
chased in small quantities. These products can be further and ability to provide an image of status, targeted adver-
divided into three subcategories: staple, impulse, and tising, and personal selling for the product. Consistency of
emergency items.
image between the product and the store is also impor-
Staple convenience products are basic items that buy- tant.
ers plan to buy before they enter a store, and include milk,
bread, and toilet paper. Impulse items are other conven- Unsought Products. Unsought products are those prod-
ience products that are purchased without prior planning, ucts that consumers are either unaware of or have little
such as candy bars, soft drinks, and tabloid newspapers. interest in actively pursuing. Examples are new innova-
Emergency products are those that are purchased in tions, life insurance, and preplanned funeral services.
response to an immediate, unexpected need such as
Because of the lack of awareness of these products or the
ambulance service or a fuel pump for the car.
need for them, heavy promotion is often required.
Since convenience products are not actually sought The distinction among convenience, shopping, spe-
out by consumers, producers attempt to get as wide a dis- cialty, and unsought products is not always clear. As noted
tribution as possible through various marketing chan-
earlier, these classifications are based on consumers’ buy-
nels—which may include different types of wholesale and
ing habits. Consequently, a given item may be a conven-
retail vendors. Convenience stores, vending machines,
ience good for one person, a shopping good for another,
and fast food are examples of retailer focus on conven- and a specialty good for a third, depending on the situa-
ience products. Within stores, they are placed at checkout tion and the demographics and attitudes of the consumer.
stands and other high-traffic areas.

Shopping Products. Shopping products are purchased BUSINESS PRODUCTS
only after the buyer compares the various products and Business products are products and services that compa-
brands available through different retailers before making nies purchase to produce their own products or to operate
a deliberate buying decision. These products are usually of their business. Unlike consumer products, business prod-
higher value than convenience goods, bought less fre- ucts are classified on the basis of their use rather than cus-
quently, and are durable. Price, quality, style, and color are tomer buying habits. These products are divided into six
typically factors in the buying decision. Televisions, com- subcategories: installations; accessory equipment; raw

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 139