Consumer Goods Economics Project
By: Shreeyas Satish Kumar
What does it mean?
Consumer Goods are goods bought by consumers instead of manufacturers producing other goods. In other words consumer goods are "final goods," they are the products that are seen in stores and bought by consumers. Materials such as steel are not consumer good because still need to be transformed into what consumers can use.
3 Types of Consumer Goods
Durable goods are goods that do not quickly wear out and last over a long period of time. Usually over a time span of three years. These types of goods are not completely used in one use, usually over a time span of three years or more. For example brick would actually never wear out. Some examples of durable goods are cars, mobile phones, bricks, furniture, etc.
Non-Durable goods are the complete opposite of durable goods. This is because they can be consumed in one use or be used over a short period of time. These types of good serve for a quick purpose unlike durable goods. Perhaps pizza is a non-durable good because its is consumed in one use and cannot be used over a long period of time. Another example is gasoline that powers up a car, it is a non-durable good that powers a durable good.
"Services are intangible commodities."-Wiki. The meaning of this line is that a service can be intangible and insubstantial. Not only that but services help the economy in a positive way because it helps goods be bought and sold. In order for a service to be performed, a person needs to have an official statement saying that they have experience and has done what ever it takes to qualify for that specific service. There are a lot of benefits doing services because the buyer has to pay for it and a profit will be made with other benefits/perks.
Examples of Consumer Goods In a Local Marketplace
In our community we have a lot of consumer goods. Some examples of consumer goods are chips and soda that are in convenience stores shops. Video games and DVD's can be bought at electronic stores or even Target or Walmart. These are the typical consumer goods that are now all over the world and although there might still be some differences between the countries, all the consumer goods are the same.
How do Consumer Goods Impact the Economy?
Consumer Goods have a huge impact on the economy. When customers buy these good, they are called consumer spending. Consumer spending makes up more than 70% of the economy, and often helps the growth of an economic recovery. An interesting fact is that, " if the gas prices go up, then it parallels with the costs of consumer goods." The meaning of this is if someone has to spend a lot of money on gas then they are going to the have to with cut down on the consumer goods. The GDP of a is a huge factor when talking about consumer goods. This is because if the GDP rises per person then the consumption of consumer goods will also rise. Also international trading can help the economy of other countries go up because of the increased imports. Thus consumer goods impact the economy by people contributing money to it consistently.
What is the Importance of Consumer Goods?
Consumer goods provide the needs and wants in our lives. It provides us food, clothing, shelter, etc. It may seem too good to hear but everything has a price, even consumer goods! The measurement of consumer goods sales is important in the assessment of gross domestic product and in determining the health of the overall economy. Without consumer goods, we wouldn't have made it into the 21st century, it provides our daily life needs to help us survive. For example this hat keeps us warm in the winter and helps us protect us from the cold. All consumer goods have a purpose in life.
The boss of Proctor and Gamble, Alan Lafley, released his book called "The Game Changer." Mr. Lafley claims to have seen an economic downfall as a "game changer" in his company. He claims to have seen this because the annual profits had gone down over 10% and analysts are worried that it may take years to make me up the profit that was lost. Brands such as Bounty paper towels and Tide detergent were down 11%.Since the sales are dropping the consumer goods are also decreasing, in order to compete with the private labels. Consumer goods were once proved to be as recession-proof as any industry can be, but now they are slowly decreasing and soon are most likely going to be gone. Unfortunately this leads to a decrease in profit and could quite possibly lead to a decrease in product production.