Page 563 - Business Principles and Management

Unit 6

Depending on who is making the purchase and how they will
use it, a product may be both a consumer good and an industrial
good. Gasoline and laptop computers, for instance, may be pur-
chased by consumers in small quantities or by businesses in large
quantities.

TYPES OF CONSUMER PRODUCTS
To look at the attributes of consumer goods more specifically, mar-
keters group them into four categories: convenience goods, shop-
ping goods, specialty goods, and unsought goods. The categories
are based on (1) how important the product is to the customer
and (2) whether the customer is willing to spend time to compare
products and brands before making a decision to buy. Companies
PHOTO: © DIGITAL VISION. that consumers purchase regularly without a great deal of thought.
make different marketing decisions, depending on which category
of consumer goods they are selling.

CONVENIENCE GOODS Convenience goods are inexpensive items

Consumers are not willing to shop around for these products
because they purchase them often, the many competing prod-
ucts do not differ much from each other, and they don’t cost much money.
How are specialty goods differ- Therefore, marketers must sell their convenience goods through many retail
ent from other types of goods?
outlets that are conveniently located close to where people work and live. Prod-
ucts that are usually treated as convenience goods are candy, milk, soft drinks,
pencils, soap, and many other inexpensive household items.

SHOPPING GOODS Products that consumers purchase less frequently than conve-
nience goods, usually have a higher price, and require some buying thought are
called shopping goods. Customers see important differences between brands in
terms of price and features. Therefore, they are willing to shop at several busi-
nesses and compare products and brands before they make a purchase. Shopping
goods do not have to be sold in as many places as convenience goods. They
need effective promotion so customers can make informed decisions. Cars,
facts & furniture, large appliances, and houses are all examples of shopping goods
for most people.
figures SPECIALTY GOODS Specialty goods are products that customers insist on having

and are willing to search for until they find them. Customers who decide that
only one product or brand will satisfy them will shop until they locate and buy
Marketing to children continues that brand. Marketers place their specialty goods in fewer businesses within a
to be a controversial issue. The shopping area, price them higher than competing products and brands, and need
Federal Trade Commission’s Chil- not promote them as much as other types of consumer products. Examples of
dren’s Online Privacy Protection specialty goods are designer clothing, expensive jewelry, and certain brands of
Act requires publishers of chil- cameras, computers, and automobiles.
dren’s Web sites to post compre-
hensive privacy policies on their UNSOUGHT GOODS Customers do not shop for some products because they do
sites. In addition, the sites must not have a strong need for them. Such products are known as unsought goods,
notify parents about their infor- and they present a difficult marketing problem. Life insurance, cemetery plots,
mation practices and obtain and funeral services are unsought by most consumers. A company marketing
parental consent before collect- unsought goods usually has to go to the customer and use personal selling to
ing any personal information discuss the need for the product. Unless the customer recognizes a need that the
from children under age 13. product can satisfy, the product will remain unsold.

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