Question

explain the definition of a product as a value package and classify goods and services

Answer 1

The Value Package

Her product is defined as a package that adds value to a customer. As per this, the product is a (value) package of features and benefits that satisfy the wants/needs of consumers.

Features - tangible and intangible qualities built into products e.g loudspeaker in a cell phone

Benefit – the use derived out of a feature in a product e.g. loudspeakers helps cell phone user to hear songs without headphones. The benefits may be physical or emotional

Classifying Goods and Services

Goods and services are classified according to buyers-buyers of consumer products or buyers of industrial products.

Consumer goods   

• Convenience Goods/services- Such goods are consumed regularly, inexpensive and purchased frequently e.g. toothpaste
• Shopping Goods - purchased less frequently and are relatively more expensive.C consumers become more brand conscious when purchasing them e.g. clothes
• Specialty Goods- purchased infrequently and are expensive. consumers become more specific and take time to choose them e.g. Cars

Industrial Goods

• Expense goods- materials and services consumed within one year e.g. stationary supplies
• Capital goods- long-lasting goods and services that last for more than one year.eg machinery