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A final good or consumer good is a commodity that is used by the consumer to satisfy current wants or needs, rather than to produce another good. A microwave oven or a bicycle is a final good, whereas the parts purchased to manufacture it are intermediate goods.

When used in measures of national income and output, the term "final goods" includes only new goods. For example, gross domestic product (GDP) excludes items counted in an earlier year to prevent double counting based on resale of items. In that context, the economic definition of goods also includes what are commonly known as services.

Manufactured goods are goods that have been processed in any way. They are distinct from raw materials but include both intermediate goods and final goods.

It then goes on to list eight additional specific exclusions and further details.[1]

Durability

Final goods can be classified into the following categories:

  1. Durable goods
  2. Nondurable goods
  3. Services

Consumer durable goods usually have a significant lifespan, which tends to be at least one year, based on the guarantee or warranty period. The maximum life depends upon the durability of the product or good. Examples include tools, cars, and boats. On the other hand, capital goods, which are tangible in nature, such as machinery or building or any other equipment that can be used in manufacturing of final product, are durable goods with limited lifespans that are determined by manufacturers before their sale. 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 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 further details.[1]

Final goods can be classified into the following categories:

  1. Durable goods
  2. Nondurable goods
  3. Services

Consumer durable goods usually have a significant lifespan, which tends to be at least one year, ba

Consumer durable goods usually have a significant lifespan, which tends to be at least one year, based on the guarantee or warranty period. The maximum life depends upon the durability of the product or good. Examples include tools, cars, and boats. On the other hand, capital goods, which are tangible in nature, such as machinery or building or any other equipment that can be used in manufacturing of final product, are durable goods with limited lifespans that are determined by manufacturers before their sale. 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 for immediate use or for use very soon. Generally, the lifespan of nondurable goods is from a few minutes to up to three years: food, beverages, clothing, shoes a

Consumer nondurable goods are purchased for immediate use or for use very soon. Generally, the lifespan of nondurable goods is from a few minutes to up to three years: food, beverages, clothing, shoes and gasoline are examples. In everyday language, nondurable goods get consumed or "used up".

Consumer services are intangible in nature. They cannot be seen, felt or tasted by the consumer but still give satisfaction to the consumer. They are also inseparable and variable in nature: they are thus produced and consumed simultaneously. Examples are haircuts, medical treatments, auto repairs and landscaping.

Final goods can be classified into the following categories, which are determined by the consumer's buying habits:

  1. Convenience goods
  2. Shopping goods
  3. Specialty goods
  4. Unsought goods

Convenience goods, shopping goods, and specialty goods are also known as "red goods

Convenience goods, shopping goods, and specialty goods are also known as "red goods", "yellow goods", and "orange goods", respectively, under the yellow, red and orange goods classification system.

Convenience goods