Economics: Consumer Goods

Daniel Z, Miles W, Corinne PT

Consumer Goods Defined

Corinne: What are consumer goods? Consumer Goods are goods bought and used by consumers. Consumer goods are the end result of a manufactured product on the shelves you see in stores. Consumer goods can also be defined as goods that satisfy human wants through consumption or use. There are three types of consumer goods. Durable, Non Durable, and Services. These three types of consumer goods provide customers with their needs and wants.

Three Types of Consumer Goods

Corinne:

Durable- Durable consumer goods, are goods that do not need to be purchased multiple times because of wearing out, breaking, or consumed quickly. These goods usually last 3 or more years. Since durable goods last longer, they usually will cost more money. Some examples of durable items are, washer machines, blenders, and refrigerators.

Non Durable- Non Durable consumer goods, are goods that are used quickly and frequently by consumers. Non Durable goods usually have a lifespan of 3 years. Some examples of Non Durable goods is food, and clothing.

Services - Service Consumer Goods, are goods that provide some kind of "help" to customers. The service provided to consumers of a product by the company that produces, markets, or supports the product, and customer. For example, a car wash is a Service Consumer Good. Car washes provide the customer with the service of cleaning their car.       

Examples in the Local Marketplace

Miles:

Durable Good- A car, refrigerator, lawn mower, lamp, phones, TVs, anything that lasts a while.

Nondurable- Clothes, food, gas, shoes, medication, etc.

Service- Car washing, maid service, chef, bellhop, anything that someone does for you.

How Consumer Goods Affect the Economy

Miles: Consumer goods affect the economy in many ways. Durable and nondurable goods are always being exported because the world thrives on them. For example, food factories export their food to school cafeterias. If these nondurable goods were not being produced at a constant rate, then many teens would be hungry. Also, many people rely on services to help them throughout the day. For example, if hotel maids did not clean up hotel rooms after the guest leaves, then the next person who uses that room will walk in to a dirty and unorganized room.  Overall, the economy is affected by consumer goods and services because people are willing to pay a lot of money for them.

The Importance of Consumer Goods

Daniel- There are many ways that consumer goods help us. Some of the ways include selling us a tool to help accomplish something, selling food to eat, or wood to build a house with. Without the opportunity to buy goods, many people would lose a source of materials. In this day and age people can no longer just live off the land. Many of our necessities nowadays can only be bought in stores. If I tried to not buy goods for an extended period of time I would eventually have a shortage.

Analysis And Summary

Daniel- I think that this article is trying to convey that many brands have lost revenue and profit over recent quarters. However, due to management techniques, workplace efficiency, and an increased marketing budget, the smaller company Reckitt's has overtaken Unilever and other giants in the industry. Reckitt's relies heavily on target advertising. This appeals to a certain type of market. Other companies to don't pick a specific target market. Companies like P&G have considered selling their products in Latin America and Asia. This could be the boost in sales that the company desperately needs.

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