20 Differences between Consumer Goods and Agricultural Goods

Distinction between Consumer Goods and Agricultural Goods

The following are some of the differences between Consumer goods and Agricultural Goods.

Consumer Goods Agricultural Goods
1. Production is not generally influenced by natural factors, i.e., weather and climatic conditions. 1. Production is very much influenced by natural factors.
2. Consumer goods are perishable in nature. 2. Agricultural goods are perishable in nature.
3. Production takes place generally during the whole year. 3. Production is seasonal.
4. Consumer goods are not bulky in nature. 4. These goods are bulky in nature.
5. Each product has unit value. 5. The unit value of most agricultural goods, with the exception of a few, is negligible.
6. Consumer goods can directly be used. 6. Generally agricultural goods cannot be directly consumed. They need to be cooked.
7. Certain consumer goods are durable in nature. e.g., furniture, television, fridge, etc. 7. These get exhausted quickly.
8. It is possible to control the quality of goods. 8. It is not possible to control the quality of goods.
9. Substitutes are always available in the market for consumer goods. 9. Perfect substitutes are not available for agricultural goods
10. Price fluctuation is an important feature of consumer goods market. 10. Price uniformity is an important feature here.
11.Brand image plays a crucial role in determining the demand. 11. Brand has no relevance in agricultural marketing.
12. Advertising plays an important role in consumer goods marketing. 12. Advertising does not play an important role in agricultural marketing.
13. Standardisation is important. 13. Grading is important here.
14. After-sale service is important in the case of consumer durables. 14. After-sale service has no relevance in agricultural goods marketing.
15. Consumer goods are affected by fashion and style changes. 15. Such changes have no relevance for agricultural goods.
16. Emotional factors such as status, prestige, ego, etc. influence demand. 16. Such factors have no relevance at all here. Buying is always influenced by need.
17. Inducements like free gifts, discounts etc., are always expected by the buyers. 17. Such inducements are generally absent in marketing agricultural goods.
18. There is elasticity in demand, i.e., when price goes up demand falls and vice versa. 18. Demand for agricultural goods is always inelastic. This is because, such goods are necessaries of life.
19. There are generally such middlemen as wholesalers, retailers or dealers for consumer goods. 19. In the market for agricultural goods, one finds in addition to wholesalers and retailers several other middlemen like commission agents, brokers and others.
20. A retailer selling consumer products, these days, provides several shopping comforts to his customers like an air-conditioned showroom, self-service, acceptance of credit card etc. 20. All these facilities are absent in a typical market for agricultural goods.