Classification of Products

 Classification of Products

 

Products can be classified based on various criteria, such as tangibility, consumer use, and durability. Here’s an overview of the main classifications:

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1. Based on Tangibility

• Tangible Products: Physical goods that can be touched and stored (e.g., smartphones, furniture).
• Intangible Products: Non-physical offerings such as services, experiences, or software (e.g., consulting, online streaming).

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2. Based on Consumer Use

• Consumer Products: Products purchased for personal use. These are further divided into:
  • Convenience Products: Frequently purchased, low-cost items (e.g., toothpaste, snacks).
  • Shopping Products: Items consumers compare for quality, price, and style before buying (e.g., clothing, electronics).
  • Specialty Products: Unique items for which consumers will make a special purchasing effort (e.g., luxury cars, designer handbags).
  • Unsought Products: Products that consumers do not actively seek out until needed (e.g., insurance, funeral services).
  
  
                                                         Types of Consumer Goods
  

• Industrial Products: Products purchased for business use in production or operations. These include:
  • Raw Materials: Basic materials for production (e.g., timber, steel).
  • Capital Goods: Long-term assets for production (e.g., machinery, buildings).
  • Operating Supplies: Day-to-day consumables (e.g., lubricants, office supplies).

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3. Based on Durability

• Durable Goods: Products that last over time and are used repeatedly (e.g., appliances, vehicles).
• Non-Durable Goods: Products consumed quickly or in a single use (e.g., food, beverages).

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4. Based on Nature

• Core Products: The fundamental need the product fulfills (e.g., transportation for a car).
• Actual Products: The tangible product itself with features and packaging (e.g., a smartphone with its design and specifications).
• Augmented Products: Additional services or benefits that enhance the product (e.g., warranties, customer support).

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5. Based on Pricing and Market Position

• Luxury Products: High-cost, premium items (e.g., Rolex watches).
• Mass-Market Products: Affordable items targeted at a broad audience (e.g., fast food).