There are various types of goods and services are available in the market that consumes by consumers to satisfy their needs and wants. So every marketer wants to know consumer key buying traits and how they dispose of the products. Today in this article we have shared insight into what are consumer goods, their meaning, their definition, what is FMCG, and what type of consumer goods with examples.
► What are Consumer Goods?
Consumer goods in simple word are defined as the products that are purchased by buyers to satisfy their current needs and want, for these goods, buyers become the end user or final user of the product. These goods are neither for resale nor use as intermediate goods but used as personnel goods.
◉ Consumer Goods Meaning
- Consumer goods simply mean products bought for consumption by the average consumer.
- In other words, consumer goods mean items that we buy for our own use and are brought on a regular basis by consumers.
◉ Definition of Consumer
A consumer of goods can be defined as “A person who buys products or goods for his own use or consumption.”
Consumer of Goods refers to any person who buys goods for consideration, in which the consideration has been paid or promised or partly paid and partly promised or under any system of deferred payment.
► What is FMCG? (Fast Moving Consumer Goods)
Fast Moving Consumer Goods are defined as goods that are nondurable in nature and have relatively low costs. FMCG products have very less margin but have high volume sales.
These are convenience goods that are present in every household and consumed by people on regular basis and they may be eatable and uneatable products. some daily-use medicines have also come under FMCG products.
◉ Examples of FMGC
Fast-moving consumer goods, FMCG goods are Biscuits, Chips, Sauces, toothpaste, vegetables, fruits, Stationery items, cleaning laundry items, etc.
► Types of Consumers Goods
There are various types of consumer goods and it is Classified on the basis of two criteria.
- (A) On the basis of the Time period of Consumption.
- (B) On the basis of Consumer Behavior.
◉ (A) On the basis of the Time period of Consumption
Types of Consumer goods on the basis of the time period of consumption are mainly divided into two types. i.e Durable and Non-Durable.
✔ Durable Goods – They can be used for a long time period. Examples – Refridgerator, Televisions, Cars, Bikes, Cycles, AC, RO, Washing Machine, etc.
✔ Non-Durable Goods – They must be used in a short time and comes with an expiry date. FMCG goods, Toothpaste, Bread, Shampoo, Fruits, Vegetables, Biscuits, and Beauty Products.
Must Read :What is Consumer Protection Act 2019, 1986?
◉ (B) On the basis of Consumer Behavior
- Convenience goods
- Shopping goods
- Specialist goods
- Unsought goods
Before we further discuss all these types of goods on the basis of consumer behavior. Lets us briefly discuss consumer behavior.
◉ What is Consumer Behaviour?
Consumer Behavior is the study of how individual customers or groups of customers select, buy, use, and dispose of goods, and services to satisfy their needs and wants.
We can classify consumer goods into four categories on the basis of consumer behavior.
✔ 1. Convenience Goods
Convenience goods refer to those goods that require little effort to purchase. These goods are easily accessible and frequently purchased by consumers. Convenience goods required minimum or very less effort thought on the part of the buyer.
Examples of convenience goods Include – All FMCG goods like Soap, Candy, Toothpaste, sugar, newspaper, etc
◉ Characteristics of Convenience Goods
- less effort to purchase
- Frequently Buying
- Normally not compared with other similar products
- Relatively inexpensive product
- Have constant demand
- Easily available in market
- Mass promotion and brand recognition strategy
✔ 2. Shopping Goods (Consumer Goods)
Shopping goods are those goods that are purchased by consumers less frequently. Consumers compare attributes of shopping goods like price, quality, sustainability, and physical evidence with other similar goods.
Consumers put in a lot of effort, time, and planning before taking a final decision on whether to purchase this product or not.
Examples of shopping goods include – Televisions, fans, air conditioners, fridges, Furniture, etc.
◉ Characteristics of Shopping Goods
- High effort to purchase
- Less frequently buying
- Normally compared with other similar products
- Fairly expensive
- Not easily available in the market as compared to convenience goods
- A targeted promotion strategy is used
✔ 3. Specialist Goods (Consumer Goods)
Specialist goods are unique in nature and possess special attributes and brand identities. Specialist product is status-oriented which willingly motivate buyers to pay the expensive price and put extra effort to purchase these kinds of goods.
These goods are very infrequently purchased by the customer and required extensive search and decision making
Examples of Specialist Goods include- Luxury cars or watches, Famous paintings, Designer cloth, Luxury perfume, etc.
◉ Characteristics of Specialist Goods
- High effort to purchase
- Focus on uniqueness and innovation
- Not easily available or have exclusive distribution
- Always compared with other similar products
- Very high price
- Very limited in number
- A targeted or selected promotion strategy is used
✔ 4. Unsought Goods (Consumer Goods)
Unsought goods are those goods that are not easily purchased by consumers under normal circumstances. Consumers have negative demand for unsought goods.
These products are often purchased by consumers because of a sense of danger or fear. Marketers used direct selling and FABV(Feature Advantage Benefit Value) approach.
Example of unsought goods includes – Insurance, Pre-planned funeral services, Fire extinguisher, etc.
◉ Characteristics of Unsought Goods
- Sellers used forced methods to sell goods
- Negative demand for these goods
- Require aggressive marketing
- Required personal selling
- Easily available in marketing