Question 4: What are industrial products? How are they different from consumer products? Explain.
Answer:
The products which are used as inputs to produce consumer products are known as industrial products, e.g. raw material, machinery, tools, etc.
Difference between industrial and consumer products:
| Basis |
Industrial Products |
Consumer Products |
| Meaning |
These products are used for further production of other goods.
|
These products are used for final consumption by the direct consumers.
|
| Number of buyer |
The buyers of industrial goods are limited.
|
The buyers of consumer goods are many in number.
|
| Buying decision |
Decisions of buyers are influenced by technical specification and goodwill.
|
Decisions of buyers are influenced by advertising and various sales promotional schemes.
|
| Nature of demand |
These products have derived demand. |
These products have direct demand. |
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