consumer product

(noun)

Any tangible product used for personal, family, and household non-business purposes.

Related Terms

Examples of consumer product in the following topics:

  • Consumer Products

    • A consumer product is any tangible product for sale that is used by a person or household for non-business purposes.
    • A consumer product is generally any tangible product for sale that is used for personal, family, household or non-business purposes.
    • To determine whether an item is a consumer product requires a factual finding, on a case-by-case basis.
    • Another type of consumer products can be classified as products you don't need, like candy, luxury goods, and toys .
    • The production and sale of consumer goods is an important sector of US GDP and creating employment.

  • Product Orientation

    • Similar to production orientation, the product orientation of marketing focuses solely on the product a company intends to sell.
    • A firm such as this would assume that as long as its product was of a high standard, people would buy and consume the product.
    • Consumers recognize product quality and differences in the performance of alternative products.
    • Consumers choose between different products based on getting the best quality for the price paid.
    • Adopting the product orientation can be advantageous to a company, due to the fact that the cost of determining consumer preferences and the development of new products and services are minimized or eliminated because consumers are in some way captive.

  • Goals of Consumer Market Research

    • Consumer market research is the systematic collection of data regrading customers' preferences for actual and potential products / services.
    • For instance, a consumer goods company that wants to develop a new cheese product for the growing Hispanic demographic can use market research.
    • If the consumer market research demonstrates that consumers do in fact have an unsatisfied need for a cheese that could replace the product they are currently consuming in Latin America, the company could go ahead and develop the cheese product.
    • Identify which consumer needs are important and whether the needs are being met by current products
    • If the consumer market research demonstrates that consumers do in fact have an unsatisfied need for a cheese that could replace the product they are currently consuming in Latin America, the company could go ahead and develop the cheese product.

  • Encouraging Product Trials

    • Promotional tactics such as free samples and discounts are often used to encourage consumers to participate in product trials.
    • Product trials include free samples, price reductions, or other purchase incentives designed to encourage consumer use during and after the trial.
    • Some of the promotional tactics companies employ to encourage consumer participation in product trials include:
    • Advertising in media that target consumers are most likely to read or listen to.
    • Companies offer free samples to encourage consumers to participate in product trials.

  • Trade vs. Consumer Promotions

    • Consumer promotions are marketing activities targeted at the consumer to encourage them to buy the product.
    • Free samples are when a product is given to the consumer so that he or she may try a product before committing to a purchase.
    • Companies will often use a combination of trade and consumer promotions when launching a new product.
    • A point of purchase or end cap display can make consumers aware of new products.
    • Differentiate between trade and consumer promotions relative to a product's marketing mix

  • B2C Channels

    • The seller makes its products or purchases them at a wholesale price, then sells them at a higher (or retail) price to the consumer, thus earning a profit.
    • The consumer uses the products for his or her own personal use and is not interested in reselling the product.
    • The types of product features consumers desire include value, convenience, efficiency in operation, dependability in use, and/or improvement in earnings.
    • Usually, a brick-and-mortar establishment offers consumers the chance to see, touch, and/or try the products.
    • Business-to-consumer e-commerce reduces transaction costs by increasing consumer access to information and allowing them to find the most competitive price for a product or service.

  • Consumer Awareness

    • Consumer awareness is the extent to which a brand is recognized by potential customers, and is correctly associated with a particular product.
    • Product awareness can consist of consumer knowledge of brand benefits, features, slogan, tag lines and other brand messaging elements.
    • Two components comprise brand awareness: brand recall and the consumer recognition of the brand.
    • Brand recall is the ability of consumers to remember brands with reference to the product.
    • Word-of-mouth marketing from family and friends, or high recognition of the product through repeated advertising, can drive consumers to purchase certain brands over others.

  • Consumer Perception of Communication

    • Analyzing how consumers access marketing messages can help brands discover consumers' preferences for how to receive information.
    • Organizations that are able to successfully craft brand messages and products directly addressing consumer requirements have a competitive advantage over similar brands.
    • Once the consumer has recognized a problem, they search for information on products and services that can solve that problem.
    • Consumers use a variety of sources, including:
    • Once the consumer decides on the brands that appeal most to them, they compare the products in their evoked set.

  • Alternative Arrangements

    • These include business-to-government, consumer-to-consumer, and institutional markets.
    • Business-to-government marketing encompasses marketing products and services to various levels of the government, such as federal, state, and local .
    • Consumer-to-consumer commerce is the completion of transactions between private individuals or consumers.
    • Craigslist and eBay usually involve consumer-to-consumer transactions.
    • Often, these types of transactions are for a lower cost than if they were conducted through a business, as there is some added risk that the product will be defective or otherwise be not as expected.

  • Defining Consumers

    • A consumer is a person (or group) who pays to consume the goods and/or services produced by a seller (i.e., company, organization).
    • In the fields of economics, marketing and advertising, a consumer is generally defined as the one who pays to consume the goods and services produced by a seller (i.e., company, organization).
    • A consumer can be a person (or group of people), generally categorized as an end user or target demographic for a product, good, or service.
    • Any product, good, or service that is developed must have a target market in mind, in order to be effectively marketed and sold.
    • Markets segmented for strategic targets (markets segmented by strategy and product characteristics, and hence by characteristics of the buyer)