What are consumer goods?
Consumer goods are products purchased for consumption by the average consumer. Also called final goods, consumer goods are the end result of production and manufacturing. Clothing, groceries and dishwashers are examples of common consumer goods.
The Consumer Product Safety Act of 1972 regulates the sale of the most common consumer goods and created the US Consumer Product Safety Commissiona group of five appointed officials who oversee product safety and issue necessary recalls of defective consumer products.
Key points to remember
- Consumer goods, or final goods, are goods sold to consumers for their use or enjoyment.
- Consumer goods can be classified as durable, non-durable or service goods.
- Consumer goods are classified based on consumer behavior and marketed by type of good, such as a convenience product or a specialty item.
Types of consumer goods
• Durable goods are consumer goods that have a lifespan of more than three years and are used repeatedly over time. Bicycles and refrigerators are considered durable goods.
• Consumables are consumed in less than three years, are commonly used only once, and include packaged food and beverages or laundry detergents.
• Service goods include items such as car repairs and haircuts that are intangible consumer goods.
Marketing of consumer goods
How the consumer perceives and uses a product determines how companies market their products.
• Convenience products are those that are consumed regularly and are readily available for purchase. These are often consumables and low-priced items sold by wholesalers and retailers. Examples of convenience products include milk and tobacco products.
• Shopping items are items purchased less frequently, are durable and are generally more expensive than everyday consumer items. Furniture and televisions are examples of purchase items.
A product recall is a request to return, exchange, or replace a product after a manufacturer or consumer monitoring group has discovered defects that affect product performance or harm consumers.
• Specialized consumer goods are rare and often considered luxury shopping. They are often marketed by brand or adapted to a niche market. Sports cars and fine art are examples of specialized consumer goods.
• Unwanted consumer goods are readily available but not sought after by the consumer. While these may be necessary purchases, they require consumer marketing to induce a purchase. Examples of non-wanted consumer goods include life insurance and prepaid funeral expenses.
What are fast moving consumer goods?
What is the consumer goods sector?
Consumer goods are considered an investment sector. Investors can buy shares of funds that include companies that produce consumer goods. The largest consumer goods ETF is the iShares US Consumer Staples (IYK) ETF. With 58 stocks and $954 million in net assets under management (AUM) as of February 2022, the top holdings in the fund are Procter & Gamble, Coca-Cola, PepsiCo, Philip Morris and CVS.
What is the difference between capital goods and consumer goods?
Capital goods, such as buildings, machinery, equipment, vehicles, and tools, are physical assets that a business uses in the production process to make products and services that consumers will use later. . Capital goods are not finished goods but are used to manufacture finished goods. Consumer goods are those used by consumers and have no future productive use.
Which companies rank among the most trusted for consumer goods in the United States?
Hasbro, Yeti and Proctor & Gamble are the top three ranked companies in 2022 for consumer goods in a survey conducted by Edelman Research.
How has e-commerce affected the demand for consumer goods?
According to the US Census Bureau, Americans spent $791.7 billion in 2020 on e-commerce of consumer goods, up 32.4% from 2019, largely due to the COVID-19 pandemic. 19 with categories like groceries, sporting goods, and home improvement items. the rise of e-commerce platforms.
A consumer good, or final good, is the final product produced by a company and purchased by a consumer. Consumer goods can be classified as durable, non-durable or services. The marketing of consumer goods depends on the use, price and characteristics of the item. The Consumer Product Safety Act of 1972 and the United States Consumer Product Safety Commission ensure that consumer protections are in place for goods available in the marketplace.
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