No further value addition can be done- Products on which no further value addition can be done are consumer products. Consumer products have undergone maximum possible value addition. Any further value addition done on them will be unnecessary because the product is already ready for consumption by the consumers, and manufacturers can sell the product as it is in the market.
Serve utility to the consumer- Consumer products provide utility to the consumers. It means that if the consumer buys such a product, s(he) will be able to use it, and the product will serve its purpose and provide some satisfaction.
A large number of buyers & sellers- Consumer products have several buyers, that is, the customers because most consumer products are products that are of daily use. There are a high number of sellers because there is a huge and constant demand for consumer products.
Availability of substitutes- Because there are a large number of sellers for consumer products, there are lots of substitutes available for the same product. Suppose you want to buy toothpaste. You will find a lot of brands offering toothpaste in the market.
Types of consumer products
Convenience consumer products- Products that the consumer buys frequently, and does not think twice before buying are convenience consumer products. The consumer does not compare the different brands, s(he) chooses his/her usual brand because the price of such products is low. Usually, such products are of daily use, so brands do not employ much advertising efforts on themâ€”examples- toothpaste, soap, etc.
Shopping consumer products- The consumer analyzes and compares the different brands in the market because the price of such products is high, and s(he) does not make frequent purchases of such products. Brands have to employ significant advertising efforts to tackle a large number of substitutes in the marketâ€”for example-items of clothing, electronic appliances, etc.
Specialized consumer products- Products that are of extremely high value, with a limited number of buyers, are specialized consumer products. The consumer makes occasional or rare purchases of such products due to the extremely high price. Brands employ their advertising efforts on a certain audience, one that will be interested in the product. Such products are sometimes available only in limited places. Examples- Supercars, luxury items, etc.
Unsought consumer products- Products that are not of top-priority to the consumer and the consumer generally does not seek such products. Brands have to employ strong advertising efforts to create a demand for such products. Examples- Insurance policies, reference books, etc.
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