~Consumer Goods~

Tarlan Torabi, Diego Haldeman, & Sakshi Thakar

What are consumer goods?

Consumer are goods purchased and used by consumers.  They are also called final goods, and are the end result of production and manufacturing. Consumer goods are what a customer will see on the store shelf. Examples: food, clothing, and devices. There are two types of consumer goods durable and non durable goods.- Tarlan

Durable goods

Durable goods are the goods that are household appliances, sports equipment, machinery.For example washing machine, Microwave, Cars, camera etc. They work for really long time, usually three or more years. Durable goods can be used more than one time. They will not wear out for a long time. Bricks are a good example as they never wear out. Durable goods come under the catogary of inversting. They can be either bought or rented.   -Sakshi

What are some of the challenges faced when selling durable goods?

  The biggest challenge faced by marketers when selling durable goods, is the price of these goods. Since durable goods last for a long time, they are more expensive than non-durable goods. The prices cannot be adjusted too much because the amount of material and labor needed to manufacter these products are higher than when manufactoring non-durable products. Consumers need to remember that their money is being spent well when purchasing these goods. -Tarlan

Non-Durable goods

Non- durable or soft goods are that are purchased regularly. They are usually household items such as food, beverages, clothing shoes, and gasoline. Their life span is usually from couple of hours to three years. Non Durable goods generally are not rented. Non durable goods come under the category of comsumption demand of goods.- Sakshi

What does the market for these goods indicate for the economy?

The market for non-durable goods tends to be stable. If they increase, this indicates economic growth and availability for job growth. But, if they suddenly increase, this indicates a sudden decrease on the prices of the goods. This may lead to a rise in interest rate and cause bond prices to fall.  -Tarlan

Services

Services are intangible products such as banking, education, transportation. Sometimes it is really difficult to differentiate between services as they are similar to goods. Services is also an example of intangible economics goods. When doing a service the buyer does not generally except by exclusive contract. There are lots of benefits of doing a service because the buyer has the willingness to pay for it. There are also other types of services like Public services. Public Services are services that are done within a society in a certain country or a state. To perform a service a person needs to have that level of skill, experience, ingenuity and resources.     - Sakshi  

Local Market place

Local Market place is a place where clients and customers buy a product in the region or area in which it is produced. It is really important for the markets to know where the customers will buy their goods. Some of the local market place example in Northern Virginia are Trader Joe's, Giant, Safeway, Wholefoods. Both durable goods and non durable goods are commonly found in local markets. Some local market examples that sell both types of goods are Target, Sears, Walmart, Cosco, and Macy's.  - Sakshi

How do consumer goods impact the Economy?

They impact our economy because our economy depends on the customers and how much they buy. In New York Times Newspaper, on May 1st it said that " If the consumer starts saving and stops spending, we're in big trouble. Consumer spending accounts for 70 percent of the economy." These two quotes shows that our economy is totally dependent on how much a customer is spending. If the customers starts to spend less for a long period of time, then our economy is not going to be stable which can led to another  national depression. The whole economy depends on the supply and demand of the customers and consumers.    - Tarlan

Why are consumer goods important?

Consumer goods fulfill the needs and wants of consumers. They are also what gives most business's or company's their profit. Since consumer goods are such a necessity, a normal life would be impossible without them. Imagine no soap, no bread, no clothes. That is not a world one would want to live in. Consumer goods are important to live a sanitary, healthy, and average life.- Diego

Analysis/Summary of Economist.com

P&G are trying to confront an unknown event: a global economic downturn.  Their profits are going down by surprising amounts, they have dropped 18% since last year. Private labels are gaining more popularity, which is decreasing the profit of consumer goods. Since the sales are dropping, the prices of consumer goods are dropping in order to compete with private labels. This could lead to downsizing, decrease in product production, or a loss of profit.-Diego

Work Cited

  1. "Consumer Goods Definition | Investopedia." Investopedia. N.p., 31 Jan. 2010. Web. 15 Dec. 2014.
  2. Durable goods definition Dictionary.com, n.d. Web. 15 Dec. 2014.
  3. Local Market? Definition and Meaning." BusinessDictionary.com. N.p., n.d. Web. 15 Dec. 2014.
  4. The Editors of Encyclopædia Britannica. "Nondurable Good." Encyclopedia Britannica Online. Encyclopedia Britannica, n.d. Web. 15 Dec. 2014.
  5. "The Game Has Changed." The Economist. The Economist Newspaper, 22 Aug. 2009. Web. 15 Dec. 2014
  6. What Are Services? Definition and Meaning." BusinessDictionary.com. N.p., n.d. Web. 15 Dec. 2014.
  7. "Durable Good." Wikipedia. Wikimedia Foundation, n.d. Web. 18 Dec. 2014.
  8. http://en.wikipedia.org/wiki/Service_%28economics%...
  9. Skousen, Mark. "Consumer Spending Drives the Economy?" : The Freeman : Foundation for Economic Education. N.p., 22 Sept. 2010. Web. 18 Dec. 2014.
  10. http://smallbusiness.chron.com/difference-between-durable-goods-nondurable-goods-34928.html

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