durable goods

(noun)

A good that yields services or utility over time rather than being used up when used once.

Related Terms

Examples of durable goods in the following topics:

  • Customer Expectations

    • Retail products are usually classified into three broad categories: food products, hard or durable goods, and soft goods or consumables.
    • Durable goods are those that yield services or utility over time rather than being used up when used once.
    • Cars and washing machines are examples of durable goods.
    • Consumable goods are those that are used up when used or otherwise have a limited life, such as clothing .
    • A department store, for example, will sell both durable and consumable goods.

  • Consumer Income, Purchasing Power, and Confidence

    • Purchasing power is the amount of goods or services that can be purchased with a unit of currency.
    • A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households.
    • A month-to-month diminishing trend in consumer confidence suggests that in the current state of the economy most consumers have a negative outlook on their ability to find and retain good jobs.
    • For example, if manufacturers anticipate that consumers will reduce retail purchases, especially for expensive and durable goods, they will cut down their inventories in advance and may delay investing in new projects and facilities.
    • On the other hand, if consumer confidence is improving, people are expected to increase their purchases of goods and services.

  • Consumer Products

    • 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.
    • Consumer products will generally be less expensive than professional-grade goods, but will lack the durability of the latter product class, and will reach obsolescence quicker.

  • Product, Placement, Promotion, and Price

    • The term "product" is defined as anything, either tangible or intangible, offered by the firm; as a solution to the needs and wants of the consumer; something that is profitable or potentially profitable; and a goods or service that meets the requirements of the various governing offices or society.
    • This strategy is commonly observed for more specialized goods that are carried through specialist dealers, for example, brands of craft tools, or large appliances.
    • This strategy is typical of luxury goods retailers such as Gucci.
    • Utility represents the advantage or fulfillment a customer receives from consuming a good or service.
    • A good pricing strategy would be the one which could balance between the price floor and the price ceiling and take into account the customer's perceived value.

  • Unsought Products

    • Unsought Goods are goods that the consumer does not know about or does not normally think of buying.
    • Marketers have classified products on the basis of durability, tangibility, and use (consumer or industrial).
    • Once the consumer is well-educated about the product, the good goes on to become a sought good.
    • Even though it is a classic example of an unsought good, it is quickly growing into a sought good.
    • This was to prevent the good from becoming an unsought good.

  • Elasticity of Demand

    • Only goods which do not conform to the law of demand, such as a Veblen good and a Giffen good, have a positive PED.
    • The PED of a good can also be used to predict the incidence (or "burden") of a tax on that good.
    • A number of factors can thus affect the elasticity of demand for a good:
    • Breadth of definition of a good: The broader the definition of a good (or service), the lower the elasticity.
    • This does not hold for consumer durables such as the cars themselves, however; eventually, it may become necessary for consumers to replace their present cars, so one would expect demand to be less elastic.

  • Defining a Brand

    • A brand consists of any name, term, design, style, words, symbols or any other feature that distinguishes the goods and services of one seller from another.
    • However, in mass-marketing, this concept originated in the 19th century with the introduction of packaged goods.
    • This enabled the packaged goods manufacturers to communicate that their products should be trusted as much as local competitors.
    • Attributes: The Mercedes-Benz brand, for example, suggests expensive, well-built, well-engineered, durable, high-prestige automobiles.

  • Production Orientation

    • However, until the 1950s, organizations relied on the assumption that their businesses would be profitable so long as they produced high quality products that were durable and worked well.
    • During the Industrial Age of the 18th and 19th centuries, production-oriented companies thrived due to both the scarcity and high demand for mass-produced, high quality goods and services.

  • Product Quality

    • In a culmination of efforts, it begins with careful assessment of what the customers want, then translating this information into technical specifications to which goods or services must conform.
    • The specifications guide product and service design, process design, production of goods and delivery of services, and service after the sale or delivery.
    • However, good quality has its own costs, including prevention, appraisal, and failure.
    • This will ultimately decrease the cost of good quality in the long run.
    • Quality of conformance – refers to the degree to which goods and services conform to the intent of the designer.

  • Product Warranties

    • There are several types of durable products, retail stores, and even service products for which warranties are expected.
    • A good jewelry store has a warranty backing up every diamond ring it sells.