Differences between Consumer Goods and Industrial Goods
The following are some of the differences between consumer goods and Industrial goods.
| Consumer Goods | Industrial Goods |
|---|---|
| 1. The demand for consumer goods is a 'direct demand'. | The demand for industrial goods is a 'derived demand'. It is derived from the demand for consumer goods, which are made using the industrial goods. |
| 2. The number of buyers is large. | Industrial goods have only limited number of buyers. |
| 3. The demand for consumer goods is elastic. | Industrial goods have relatively inelastic demand. |
| 4. The buyers are found scattered in different parts of the country / world. | The buyers are found to be concentrating in certain regions only. For example, the buyers of raw cotton, who are the cotton textile mill owners, are found in and around Coimbatore in Tami lnadu. |
| 5. Each purchase will generally be of small value. | Each purchase involves a very high amount (in money terms). |
| 6. These goods are not technically complicated. | Industrial goods are technically complicated. Such goods cannot be assessed by an ordinary buyer |
| 7. Buying is much influenced by emotions. | Buying cannot be influenced by emotions. |
| 8. Any individual can undertake buying. | Here, buying is always a group process. Finance experts, engineers, accountants and others will have to work together before taking the purchase decision. |
| 9. After-sale service is important in the case of consumer durables. | After-sale service is of paramount importance in the case of all industrial goods. |
| 10. There are a number of middlemen in the market. | The manufacturers of industrial goods supply directly to their customers. |
| 11. A buyer of consumer goods may not have thorough knowledge of the goods he buys and uses. | A buyer of industrial goods must have complete knowledge of the goods he buys and uses. |
| 12. The reputation of the seller or manufacturer may not always be given importance in buying consumer goods. | The reputation of the manufacturer is always important in buying industrial goods. |
| 13. Inducements to the buyers in the form of cash discounts, free gifts, etc. are made always by those marketing consumer goods. | Such inducements may not be common in the marketing of industrial goods. |
| 14. Leasing arrangements are not made in the marketing of consumer goods. | Leasing arrangements are quite common in the marketing of industrial goods. The seller, in view of the high cost of the industrial goods, may provide the facility of leasing to the buyer. |
| 15. The market for consumer goods is affected by fashion and style changes. | The market for industrial goods is affected by technological changes. |
