Question

Long answer type questions.

What is a product? Explain Classification of product in detail.

Answer 1

A product can be anything that is of value to the buyer. This includes both tangible and intangible products that are capable of being exchanged for value. Goods can be classified into four categories:

Goods can be classified on the basis of their life
i. Durable goods: Goods that are long lasting. For example, cars, furniture, etc.
ii. Non-durable goods: Goods that do not last long. For example, vegetables, soaps, food grains, etc.

Goods can be segregated depending on the processing techniques
i. Primary goods: These goods are directly consumed. For example, iron, coal, etc.
ii. Semi-manufactured goods: These goods are used after being processed further. For example, paper, clothes, etc.
iii. Manufactured goods: These goods are made from raw materials through some process. For example, tables, chairs, etc.

Goods can be segregated depending on their nature
i. Natural goods: These goods are provided by nature. For example, water, minerals, etc.
ii. Agricultural goods: These goods are obtained from agriculture. For example, wheat, rice, cotton, etc.
iii. Manufactured goods: These goods are produced in factories with the help of labour and machinery. For example, computers, motor cars, etc.

Goods can be classified depending on their utility
i. Consumer goods: These goods are consumed by people to satisfy their needs. For example, watches, perfumes, shoes, etc.
ii. Industrial goods: These goods are used for the production of other goods. For example, machinery.