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Difference between Consumer Products and Industrial Products

Last Updated : 04 Jan, 2024
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Anything of value offered by an organisation to the market for satisfying their want or need is known as a Product. The concept of product not only relates to the physical product but also the benefits offered by the product. For example, while purchasing a washing machine, a consumer does not only look for its physical qualities but also some intangible factors, such as its brand name, guarantee offered, company’s image, status symbol, etc. Hence, it can be said that a product is a mixture of tangible and intangible features, a consumer can exchange for a value in return to satisfy their needs. Products can be classified into two categories; viz., Consumer Products and Industrial Products

Difference between Consumer Products and Industrial Products

What are Consumer Products?

The products which directly satisfy the wants and needs of a consumer are known as Consumer Products. For instance, soap, clothes, bread, jam, butter, etc. Consumer products are used by consumers for their personal needs. These products can be further classified into two categories: On the Basis of Durability( Non-Durable Products, Durable Products, and Services) and On the Basis of Shopping Efforts(Convenience Products, Shopping Products, and Speciality Products).

What are Industrial Products?

The products used by the organisations as inputs for the production of other products are known as Industrial Products. For example, lubricants, tools, equipment, machines, etc. Industrial Products can be classified into three categories; namely, Materials and Parts, Capital Items, and Supplies and Business Services.

Difference between Consumer Products and Industrial Products

Basis Consumer Products Industrial Products
Meaning The products which directly satisfy the wants and needs of a consumer are known as Consumer Products. The products used by the organisations as inputs for the production of other products are known as Industrial Products.
Buying Motive Consumer products are purchased with the motive of personal consumption. Industrial products are purchased with the motive of manufacturing other products.
Nature of Buyers The buyers of consumer products are more impulsive and spend less time and effort in comparing different brands available in the market. The buyers of industrial products are more rational and spend more time and effort comparing different brands available to them.
Factors affecting Purchase Decision Advertisements and Sales Promotion Schemes affect the purchasing decision of the buyers. Technical factors, cost, and goodwill of the supplier affect the purchasing decision of the buyers.
Number of Buyers The number of buyers of consumer products is large. The number of buyers of industrial products is limited.
Nature of Demand As these products satisfy the wants of consumers directly, they have a direct demand. As these products indirectly satisfy the wants of consumers, they have a derived demand(derived from the demand for consumer products).
Geographic Distribution The demand for consumer products is widely spread. The demand for industrial products is concentrated at fixed locations.
Channel Levels These products have longer channels of distribution. These products have shorter channels of distribution.

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