Product Classification

A product is a good, a service, an idea received in an exchange. A product may be tangible or intangible and includes functional, social, and psychological utilities or benefits. It also includes services, such as installation, guarantees, product information, and promises of repair or maintenance. Products can be classified into two groups, either consumer products or business products. As college students, most of us tend to fall under the consumer category when purchasing different products.

Consumer products are products purchased to satisfy personal and family needs. When classifying consumer products, it is based on the consumer buying behavior. There are four different classifying categories: convenience, shopping, specialty, and unsought products. However, not all buyers may behave in the same fashion when purchasing a specific product, therefore one product may fit into several different categories. Convenience products are relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort. Shopping products are items for which buyers are willing to expend considerable effort in planning and making the purchase. Specialty products possess one or more unique characteristics, and generally buyers are willing to expend considerable effort to obtain them. Unsought products are products purchased when a sudden problem must be solved, products of which customers are unaware, and products that people do not necessarily think of purchasing.

Business products are products bought to use in a firm's operations, to resell, or to make other products. Business products are usually purchased on the basis of an organization's goals and objectives, and they can be classified into seven categories according to their characteristics and intended uses: installations; accessory equipment; raw materials; component parts; process materials; maintenance, repair, and operating (MRO) supplies; and business services.

What was the last product you purchased? Under which category of consumer goods would you classify it as? Explain.