In economics, any commodity which is produced and subsequently
consumed by the consumer, to satisfy his current wants or needs, is a
consumer good or final good.
Consumer goods are goods that are
ultimately consumed rather than used in the production of another
good. For example, a microwave oven or a bicycle which is sold to a
consumer is a final good or consumer good, whereas the components
which are sold to be used in those goods are called intermediate
goods. For example, textiles or transistors which can be used to make
some further goods.
When used in measures of national income and output, the term "final
goods" only includes new goods. For instance, the GDP excludes items
counted in an earlier year to prevent double counting of production
based on resales of the same item second and third hand. In this
context the economic definition of goods includes what are commonly
known as services.
Manufactured goods are goods that have been processed in any way. As
such, they are the opposite of raw materials, but include intermediate
goods as well as final goods.
3 Buying habits
3.1 Convenience goods
3.2 Shopping consumer goods
3.3 Specialty consumer goods
3.4 Unsought consumer goods
4 Mergers and Acquisitions
5 See also
There are legal definitions. For example, The United States Consumer
Product Safety Act has an extensive definition of consumer product,
CONSUMER PRODUCT.--The term ‘‘consumer product’’ means any
article, or component part thereof, produced or distributed (i) for
sale to a consumer for use in or around a permanent or temporary
household or residence, a school, in recreation, or otherwise, or (ii)
for the personal use, consumption or enjoyment of a consumer in or
around a permanent or temporary household or residence, a school, in
recreation, or otherwise; but such term does not include— (A) any
article which is not customarily produced or distributed for sale to,
or use or consumption by, or enjoyment of, a consumer,
It then goes on to list eight additional specific exclusions and
Final goods can be classified into the following categories:
Consumer durable goods usually have a significant life span which
tends to be a minimum of 1 or 2 year based on guarantee or warranty
period and maximum life depends upon the durability of the product or
good. Whereas for capital goods which are tangible in nature, such as
machinery or building or any other equipment which can be used in
manufacturing of final product, these are durable goods with limited
life span determined by its manufacturer before selling. The longevity
and the often higher cost of durable goods usually cause consumers to
postpone expenditures on them, which makes durables the most volatile
(or cost-dependent) component of consumption.
Consumer nondurable goods are purchased either for the immediate use
or to keep it for very short span of time. Generally the life span of
nondurable goods may vary from a few minutes to up to three years. Few
examples of such goods are food, beverages, clothing, shoes, and
Consumer services are the intangible in nature: they cannot be seen,
felt or tasted by the consumer but still they give satisfaction to the
consumer. They are also inseparable and variable in nature which means
they are produced and consumed simultaneously. Examples of consumer
services include haircuts, auto repairs, landscaping, etc.
Final goods can be classified into the following categories, which are
determined by the consumer's buying habits:
Convenience goods are goods which are regularly consumed and easily
available. Generally convenience goods come in the category of
nondurable goods such as fast foods, cigarettes and tobacco with low
value. Convenience goods are mostly sold by wholesalers or retailers,
so as to make them available to the consumers in good or large volume.
Convenience goods can further be categorized into:
Staple convenience consumer goods
Impulse convenience consumer Goods
Staple convenience consumer goods are those kinds of goods which come
under the basic necessities of the consumer. These goods are easily
available and in large quantity. Examples include milk, bread, sugar,
Impulse convenience consumer goods are the goods which do not belong
to the priority list of the consumer. These goods are purchased
without any prior planning, just on the basis of the impulse. Examples
include potato wafers, candies, ice creams, cold drinks, etc.
Shopping consumer goods
Shopping consumer goods are the goods which take lot of time and
proper planning before making purchase decision; in this case consumer
does a lot of selection and comparison based on various parameters
such as cost, brand, style, comfort etc., before buying an item.
Shopping goods are costlier than convenience goods and are durable in
Consumer goods companies usually try to set up their shops and
show rooms in active shopping area to attract customer attention and
their main focus is to do lots of advertising and promotion so that to
attract more customer.
Example include clothing items, televisions, radio, footwear, home
furnishing, etc. They sell Ray Bans
Specialty consumer goods
Specialty goods are unique in nature; these are unusual and luxurious
items available in the market. Specialty goods are mostly purchased by
the upper class of the society as they are expensive in nature and
difficult to be afforded by middle or lower-class people. Companies
advertise their goods targeting the upper class. These goods do not
fall under the category of necessity; rather they are purchased on the
basis personal preference or desire. Brand name, uniqueness, and
special features of an item are major attributes which attract
customers and make them buy such products.
Examples include antiques, jewelry, wedding dresses, cars, etc.
Unsought consumer goods
Unsought goods neither belong to the necessity group of consumer goods
list nor to specialty goods. They are always available in the market
but are purchased by very few consumers, either based on their
interest or their need for some specific reasons. The general public
does not purchase such goods often.
Examples include snowshoes, fire extinguishers, flood insurance, etc.
Mergers and Acquisitions
In the consumer product sector, there have been 107,891 deals
announced between 1985 and 2018, which cumulates to a total value of
around 5,835 bil USD. 2007 was the year with the largest value (4,888
bil. USD) followed by a steep slump in 2009 (decrease of -70.9%).
After the first wave in 2007, we are currently in the second big
M&A wave (in the consumer products sector) and a decline is
Fast-moving consumer goods
^ "Archived copy" (PDF). Archived from the original (PDF) on
2013-01-08. Retrieved 2013-05-09.
^ "M&A by Industries - Institute for Mergers, Acquisitions and
Alliances (IMAA)". Institute for Mergers, Acquisitions and Alliances
(IMAA). Retrieved 2018-02-27.
Types of goods
Private goods (includes household goods)
Global public goods
(Non-)Rivalrous goods and (Non-)Excludable goods
Complementary goods vs. Substitute goods vs. Independent goods
Free goods vs. Positional goods
Intermediate goods (producer goods)
Normal goods (Necessity goods)
Consumer culture theory