Generally, products are classified into two types;
- Consumer Products (convenience products, shopping products, specialty products, unsought products).
- Industrial Products (capital goods, raw materials, component parts, major equipment, accessory equipment, operating supplies, and services).
Consumer products are those which are bought by consumers for ultimate consumption and not for resale. These goods can be further classified based on how consumers buy them. Consumer products include (1) convenience products, (2) shopping products, (3) specialty products, and (4) unsought products.
Industrial products are those intended for use in making other products or operating a business or institution. Thus, industrial products are differentiated from consumer products based on their ultimate use. The types of Industrial goods are raw materials, component parts, major equipment, accessory equipment, operating supplies, and services.