Question

Define product and the major classifications of products and services.

Answer 1

A product is anything which can be offered in a market to sell for acquisition, use or consumption that can satisfy the needs or wants of the consumers or buyers. The product not just involves the tangible good but also the intangibles; services.

There are two major classifications of the products and services based on the type of people or buyer or consumer that would use the same:

1. Consumer product: The consumer products are the goods or services which are bought by the consumers for the final use. These consumers goods can further be classified based on how the consumers would buy these.

a. Convenience goods: these goods are bought with a minimum of least effort, such as newspapers.

b. Specialty goods: these goods are identified by the particular brand value or with unique characteristics and may take extra or special efforts to make purchases. For example, designer watches.

c. Shopping goods: these goods takes time as the consumer while making the purchase of these goods compares among all the related goods based on price, quality, etc. Example are airline ticketing, clothing.

d. Unplanned or not sought goods: these are not ought after goods as the consumers do not plan on making these purchase. For example the donations to say blood bank.

2. Industrial product: These products are used so as can be put to use for further processing so that a finished or final product can be made. These can also be further classified based on the purpose the goods are bought for:

a. Raw materials or Parts: these are the raw materials which are used to further process in order to make a final product. they can be natural or farm products.

b. Capital items: these are the capital goods which help in the processing of the raw material into the finished goods. For example, machines,

c. Supplies: these are used for the maintenance of the existing machines, and also include operating supplies such as oils, coal, etc.