Product classification, by Neeraj Bhandari ( Surkhet.Nepal )
Product classification can be done in a variety
1. Consumer-Goods Classification
Classified on the basis of shopping habits
2. Durability and Tangibility
3. Industrial-Goods Classification
Classified in terms of their relative cost and how
they enter the production process
Inexpensive, frequently purchased.
Little effort needed to purchase them.
Staples, impulse and emergency goods.
Ex. Milk, Bread, Eggs, Umbrella, Sweaters,
Not as frequently as convenience products.
Consumer does research before purchase
Eg. Washing Machine, Fridge, Interiors (Wood,
Steel, Modular Kitchens)
Consumer is prepared to pay a premium price
Ex. Luxury cars, Expensive paintings etc.
Goods that the consumer does not know
about or does not normally think of buying,
and the purchase of which arises due to
danger or the fear of danger and lack of
The classic examples of known but unsought
goods are funeral
services, encyclopaedias, fire
extinguishers and reference books.
In some cases even an airplane/helicopters
can be cited as examples of unsought goods.
1. Non-Durable Goods:
Tangible goods consumed in one or few
Strategy : availability, low priced, heavily
2. Durable Goods:
Tangible goods that survive many uses
Require more personal selling and service
Higher margins and requires seller guarantee
Requires more quality control and credibility