We explain what consumer goods are, how they are produced and classified. Also, what are its characteristics and some examples.
Consumer goods are understood as all the products and merchandise that a nation or a sector produces to satisfy a specific need of the population and that are acquired by its public for said purposes. Some consumer goods are food, footwear, furniture, real estate, electronic devices, etc.
They are distinguished from production goods or capital goods in that they are made to feed other production processes, as is the case of certain raw materials , semi-processed goods, etc. Consumer goods (or final consumer goods) go directly to the final consumer , so they represent the last link in the production chain.
All consumer goods have a price determined by the costs of their production , distribution, marketing and promotion, so that all the sectors involved in satisfying the specific need of the client receive their portion of the stipulated payment. Consumer goods can be material goods (such as food) or immaterial goods (such as a service).
Economic goods or scarce goods are understood as those that must be produced and obtained in exchange for a price determined by their production chain.
They are not in a state of natural abundance in the world , and therefore are considered scarce.
All consumer goods are economic goods.
These goods have no owner or price , although they also serve to satisfy certain needs. For example, breathing air is a free good.
Consumer goods are classified based on the following criteria:
Given that the same consumer good is produced by different actors in the same society , that is, different manufacturers can dedicate themselves to the same product , a competitive relationship is established between them for the attention and preference of the consumer. This is known as supply and demand: the supply of ready-to-eat products and the demand from consumers.
Among other things, this principle is responsible for setting the prices of consumer goods: the higher the demand and the lower the supply, the price will rise; and the lower the demand and the higher the supply, it will go down.
Despite not intervening in the production of consumer goods, the marketing or promotion of the product also influences its reception by consumers and may be responsible for one consumer good being more in demand than another.
Since producers want to enjoy the favoritism of consumers, they invest part of their profits in promoting their goods above the competition, encouraging their consumption through various persuasive strategies.
Convenience goods or products are relatively low-priced consumer goods and are consumed immediately , with minimal effort, as part of impulse purchases, emergent needs, or daily consumption habits, such as cigarettes.
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