By Belle s, Greg D, Johnny C, and Paige E.
Definition of Consumer goods
Products that are purchased for consumption by the average consumer. Alternatively called final goods, consumer goods are the end result of production and manufacturing and are what a consumer will see on the store shelf. Clothing, food, automobiles and jewelry are all examples of consumer goods. Basic materials such as copper are not considered consumer goods because they must be transformed into usable products.
Explain three types of consumer goods
Durable Goods: Goods that don't run out easily and can be used for a long time.
Nondurable Goods: Goods that run out easily and cannot be used for a long time.
Services: Intangible facilities based on a skill that the consumer could usually not execute themselves.
Example in local marketplace
Durable goods - Houses, cars, boat, personal jets, personal pools, clothes
Nondurable Goods - Food, gasoline, paper bags, plastic bags, paper airplanes,
Services - Cleaning maids, cab, bus, and car drivers,
how consumer goods impact Economy
Consumer goods help drive the economy by regulating money. Money can come from manufacturing durable and non durable goods, the consumers have to pay for them which makes more money regulate through the economy. Services are also getting money because the people that want the services have to pay for them. The people that are providing the services are also getting paid by their providers.
Importance of consumer goods
Without the presence of consumer goods in the national economy, the economy wouldn't have any money. The lack of money from this part of the economy would definitely effect the economy in a bad way because 1. there would be job loss, and 2. there wouldn't be as much money regulating! Consumer goods also make the people who want them happy. Consumers obviously buy the goods expecting a positive outcome and without that there wouldn't be happy customers.
Analysis and Summary of "The Game has changed"
The article "The Game Has Changed" is an analysis on the decline of sales in big brands and the increase in sales for private labels. They believe that the brand-name products are losing customers because during the recession customers are saving in any way they can. Even though some off-brand products are just a quarter less than brand-name goods, the sales are still in favor of the private-label brands because they are appealing to the more frugal and penny-pinching customers. When analyzing this downturn for brand-name products, many people agree that when the nation reaches out of the recession the customers will not ever return to their beloved brand-names. However Reckitt Benckiser, which manufactures the products of Lysol, have not been affected by the recession. In fact, they had a 14% increase in profit and a 8% increase in sale. The success at Reckitt is from their management, marketing, and positioning of brands. With their close knit staff in management, they can make decisions easier and quicker. They also increased their internal spending on marketing by 25% while their competitors were doing just the opposite. They are also releasing more variations of their products, including a basic form. The more thrifty customers will go for the basic variety of their products, but Reckitt continues to market their quality products because they believe that even in an economic downturn customers do not turn down innovative and good quality products. Overall what we can see from this article is that if you are a brand-name company during a recession, you need to make smart decisions and take risks in marketing and management so that you are not overlooked to private labels.
Wikipedia - for all types of goods defnitions