Arman A, Julia S, Sophia J, Chase F, Sam M, William H
Definition of Consumer Goods
Consumer goods are goods bought and used by consumers, rather than by manufacturers for producing other goods. They are also used to satisfy the wants and needs of the consumer. Consumer durable goods have a significant life span, often three years or more. As with capital goods (tangible items such as buildings, machinery, and equipment produced and used in the production of other goods and services), the consumption of a durable good is spread over its life spans. The similarities in the consumption and maintenance patterns of durable and capital goods sometimes obscure the dividing line between the two.
Explanation of 3 types of Consumer Goods
One example of consumer goods is milk because it is not produced by machines or raw materials. Another example are utensils are because they are household items, and are used to satisfy the needs and wants of the consumer. The last example is food because it has a low life span, which is something that does not produce another product or service.
Examples in the Local Marketplace
In our local area we have a few examples of consumer goods. Most of the examples are food or beverages, such as Coke or Doritos. Video games and DVD's are also examples in our area. These are typical consumer goods all over the world and although there are a few variations the similarities are still there connecting us to the rest of the world.
How Consumer Goods Impact the Economy
Consumer goods impact the economy on many factors. The most important being prices that corresponding with supplie and demand. Consumer goods are meant to be sold and this buying of goods is for the pure consumer (hence consumer goods). Products that make consumers buy more shift the power of demand and how much supplies people need to make these products, this is why goods are a direct factor of a economy. However in an ideal economy consumer goods has the same correlation with the willingness to buy directly from the consumers that are on the market. While we may struggle to keep this balance upright at times, consumer goods help us positively influence the economy because of its appeal to the average buyer.
Importance of Consumer Goods
Consumer spending is an important economic factor because it usually crospondes with the overall consumer confidence in a nation’s economy. High consumer confidence indicators usually relate to higher levels of consumer spending in the economy. Consumer confidence provides governments and businesses with an analysis on consumer's needs and wants.
Analysis and Summary
Alan Lafley, the boss of Procter and Gamble wrote a book called The Game Changer. People bought the book to find out good business strategies. P&G reported profits of $2.5 billion down 18 % in the most recent quarter from last year. Most packaged goods firms are struggling money wise. People used to believed as recession proof but it seems as if that theory is not true. This is largely because of the private brands that are coming out, because they are normally a quarter less. Retailers are also giving more space for their private brands then they are giving for the other national brands. In the past year private sales have grown around 9% in America. Some other firms however aren't doing as bad and report a 14% increase in profits this year. Some people still believe however that with proper advertising national brands can still be sold and keep up with private brands competition. Other people are spending more money on trying to find cheaper ways to produce their goods so they can keep up with the private brands competitions prices.
"Consumer Good (economics)." Encyclopedia Britannica Online. Encyclopedia Britannica, n.d. Web. 11 Feb. 2014.//