Product versus Goods
Products and goods are used as synonyms in common parlance. However, a good is something that is tangible in contrast with the services which are intangible. Both goods are services are products. Anything, whether good or service offered in the market is a Product. Goods may be consumer goods or Industrial Goods. The consumer goods and services refer to the products that are meant for final consumption by the ultimate Consumer. The examples are Bread, Butter, Soap, Toothpaste (Consumer Goods) and hair cut , personal healthcare etc. (Consumer service).
Industrial Goods refer to the goods that are meant to be used in commercial production of other goods and services or any other business activity. Raw materials, engines, lubricants, tools, etc. are some examples.
Here are few more differences between Consumer Goods and Industrial Goods:
- The number of customers for consumer goods is often very large
- The demand for consumer goods is autonomous demand. This means that they are demanded by the ultimate consumers directly. The demand for Industrial Goods is derived demand, which means that demand for one good is a result of demand of another good.
- The consumers often don’t do through analysis and research their demanded products. In case of industrial goods, extensive study is done.
- The difference in quantity demanded. In Industrial goods, often the demanded quantity per customer is high.
- Market for consumer goods is large and open market, while in the case of Industrial goods it is often limited.