Business – 3.1 The nature of marketing – Consumer and industrial marketing | e-Consult
3.1 The nature of marketing – Consumer and industrial marketing (1 questions)
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Answer:
Product classification is the process of grouping products based on their characteristics, purchase behaviour, and the market they serve. The main distinction is between consumer products and industrial products:
- Consumer products are purchased by individuals for personal consumption. They are typically bought through retail channels and are influenced by personal preferences, price, and convenience. Examples: a smartphone, a pack of biscuits.
- Industrial products are bought by organisations for use in production, operation, or resale. Purchase decisions are based on technical specifications, durability, and cost‑effectiveness. Examples: a CNC machine, bulk raw steel.