Common Misconceptions About Consumer Products

Consumer products, sometimes also known as finished goods, are goods purchased by consumers for consumption. For instance, toothpaste is considered a consumer good because it is purchased and used directly by the consumer without having to go through a distribution or retail system. This category also includes food and drink products like detergents, sugar, tea, coffee, and tobacco. Consumer products come in many forms. Some of them are household items like kitchen gadgets; others are the finished products of businesses like automobiles, computers, clothing, toys, and medical devices.

There is an ongoing debate as to whether marketing has a role to play in the development of consumer products or if consumers are primarily responsible for changes in the market share of certain brands. A recent study by the Association of Personal Retailers (AAP) supports the view that consumers are the ones who determine the price of a product. Further, the group argues that consumers do not purchase unsolicited products because they have the ability to do so. Therefore, marketing compared to unsolicited or retail marketing is ineffective when it comes to driving product demand.

While some studies point out the role of marketing when it comes to leveling the product quality playing a major role in consumers' purchasing decisions, some experts tend to disagree with this notion. John Dunham, president of APRO, in an article published in the November/December issue of Health Management, points out that there are a variety of different types of consumer products. The category of unsolicited goods comprises mainly of health and beauty products. The group then goes on to say that marketing has little or no effect on these consumer products because consumers purchase them based on their personal needs and tastes.

Product characteristics are also another important factor which marketing efforts play in leveling the product quality playing a major role in the purchasing decisions of consumers. Consumer products come in different types, designs, qualities and prices. The group further goes on to say that consumers purchase different types of products based on these characteristics. Examples of these characteristics are:

The first example given by the group refers to the fact that most consumers do not purchase the same amount of final goods regardless of the brand. The second example refers to the fact that some consumer products are less preferred by customers than others. The third example includes the fact that many consumers do not want to be bothered by sales personnel when making purchases. The fourth example deals with the fact that other consumers feel that consumer products should be sold on terms and conditions. The last example includes the fact that other consumers prefer not to be touched while making a purchase.

When it comes to the pricing of consumer products, the association further states that prices vary across different industries. The price of certain packaged goods may be high in one industry but low in another industry. Conversely, the price of the same good may be very high in one market segment and extremely low in another market segment. It is for this reason that personal use items like books, clothing and furniture to command relatively low prices. On the other hand, branded goods command very high prices. The reasons for this are as follows:

As mentioned earlier, marketing has a major role to play in determining the pricing of consumer products. Marketers determine the pricing of consumer products on the basis of their perceived utility and final costs associated with the purchase. If a marketing strategy focuses on offering a product at low costs, consumers will perceive it as a bargain. In turn, they will purchase it. Conversely, if a marketing strategy focuses on delivering goods at higher costs, consumers will perceive it as a luxury good, and they will not purchase it.

Unsought products or those that fall in the gray area of the marketing spectrum can either be ignored by consumers or viewed as necessities by them. It is in the process of defining what a necessity is and what a luxury that marketers get into trouble is. For instance, if the cost of delivery of a product to the consumer is high, then the product will be seen as a luxury and consumers who buy it will find it a necessity. Similarly, products that do not require high levels of transportation such as food products and pakistan herbal medicine devices are often viewed as necessities by consumers.