- Convenience goods are those that require little effort on the part of the buyer, while shopping goods require
research and comparison.
- In this section, we will differentiate between convenience and shopping goods.
- Shopping goods do not necessarily have to be distributed widely.
- Discounting, or promotional price-cutting, is a characteristic of many shopping goods because of retailers' desire to provide attractive shopping values.
- An example of a shopping good is a car.
Classifying Consumer Products- Consumer products can be classified as convenience, shopping, or specialty goods.
- In contrast, consumers want to be able to compare products categorized as shopping
goods.
- Although many shopping goods are nationally advertised, often, it is the ability of the retailer to differentiate itself that creates the sale.
- Discounting, or promotional price-cutting, is a characteristic of many shopping goods because of retailers' desire to provide attractive shopping values.
- This, combined with the necessity to price discount and provide exceptional service, means that retailers expect
strong support from manufacturers with shopping goods.
Marketing Classes of Products- Products can be classified based on consumer versus industrial goods and goods versus
services.
- A classification long used in marketing separates products targeted at consumers into three groups: (1) Convenience goods, (2) shopping goods and (3) specialty goods.
- Consumers desire to compare products categorized as shopping goods.
- Although many shopping goods are nationally advertised, often it is the ability of the retailer to differentiate itself that creates the sale.
- Discounting,
or promotional price-cutting, is a characteristic of many shopping goods because of retailers' desire to provide attractive shopping values.
Specialty Products- Specialty goods represent the third product
classification (after convenience and shopping goods).
- If consumers shop at a store even if they have to go considerably out of their way to get there, it would be considered a speciality store that sells specialty goods.
- Whether a good is a shopping or a speciality good depends on the consumer's socioeconomic background.
- Since a speciality good entails a high degree of customer loyalty, the
shopping effort does not involve comparing one brand against another, but finding a store that carries the item in question.
- Speciality goods have higher profit margins and higher prices relative to convenience or shopping goods.
Social Classes- People in the same social class tend to have similar attitudes, live in similar neighborhoods, dress alike, and shop at the same type of stores.
- Generally, the rich have the ability to purchase
more consumer goods than those with less income, and those goods are of higher quality .
- There is also a distinction in the type of goods purchased.
- For example, the upper class tend to be the primary buyers of fine jewelry and often shop at exclusive retailers.
- Material goods often take on major symbolic meaning for this group.
Internet Retailers- Online retailing is a form of electronic commerce where consumers directly buy goods or services from a seller using the Internet.
- Online retailing is a form of electronic commerce whereby consumers directly buy goods
or services from a seller over the Internet without an intermediary.
- An online shop, eshop, e-store, Internet shop, webshop, webstore, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or shopping center.
- The process is called business-to-consumer (B2C) online shopping.
- Once a payment has been accepted, the goods or services can be delivered in the
following ways:
Business Products- Business products are sold to other businesses, as opposed to convenience, shopping, and specialty products, which are sold to consumers.
- These are goods that are sold to other
businesses, and used to produce other goods.
- Industrial products can either be categorized from the perspective of the producer and how they shop for the product, or from the perspective of the manufacturer, how they are produced and how much they cost.
- The demands for manufactured industrial goods are usually derived from the demands for ultimate consumer goods.
- There are a number of specific types of manufactured industrial
goods.
Value of Retailing- Retailing goods or services goes back to the beginning of recorded history.
- Though referred to by a number of different labels throughout the globe, the pawn or second hand shop is a staple of most communities.
- Retailing second
hand or used goods, it enables consumers to purchase goods at deeply discounted prices or to borrow against and using the value of the product as collateral against a cash loan.
- In most cases the price paid for the goods or the goods donated are often recognized as a tax-deductible item.
- E Bay changed the way second hand goods are sold and bought
Basic financial statements- The only items that need additional explanation are "Cost of goods sold" and "gross margin".
- The cost of goods sold is the total cost the owner of a business paid for products sold.
- If
the owner of Bill's Bicycle Shop simply buys bicycles from the manufacturer and has them shipped to the shop, the cost of a bicycle is whatever bill paid the manufacturer plus the cost of shipping it to the shop and any labor cost that might be involved in assembling the bicycle before putting it on display for customers to see.
- The Cost of goods sold shown on the Income Statement (USD 8,000) is the total costs associated with all of the bicycles sold
by Bill in the year 2009.
- Gross margin is simply the difference between Sales and the Cost of goods sold.
Nonprice Competition- Common practices in the competition between firms (such as supermarkets and other
stores) include the following: traditional advertising and marketing, store loyalty cards, banking and other services (including travel insurance), in-store chemists and post offices, home delivery systems, discounted petrol at hypermarkets, extension of opening hours (24 hour shopping), innovative use of technology for shoppers including self-scanning, and internet shopping services.
- For example, brand-name goods often sell more units than do their generic
counterparts, despite usually being more expensive.
- Amazon.com makes shopping and researching products, prices, and seller reliability quick and easy for its customers.
Shopping goods are those items bought less frequently, are durable, and are commonly more expensive than convenience goods. Examples of shopping goods include furniture and televisions. Specialty consumer goods are rare and often considered luxury purchases. They are often marketed by brand or geared to a niche market.
What are 5 examples of consumer goods?
Common examples of these are food, beverages, clothing, shoes, and gasoline. Consumer services are intangible products or actions that are typically produced and consumed simultaneously.
There are two types of shopping products: homogeneous and heterogeneous.
What are 5 examples of products?
Examples of products. Magazines.. Toothpaste.. Candy.. Laundry detergent.. Shampoo.. |
