Question

What are industrial products? How are they different from consumer products? Explain.

Answer 1

The products which are used as inputs to produce consumer products are known as industrial products. e.g. raw material, machinery, tools, etc.

Difference between industrial and consumer products:

$\begin{array}{ccc}\text{Basis}& \text{Industrial products}& \text{Consumer products}\\ \text{Meaning}& \text{These products are used for further}& \text{These products are used for final}\\ & \text{production of other goods}.& \text{consumption by the direct consumers}.\\ \text{Number of buyers}& \text{The buyers of industrial}& \text{The buyers of consumer goods}\\ & \text{goods are limited}.& \text{are many in number.}\\ \text{Buying decision}& \text{Decisions of buyers are influenced by technical}& \text{Decisions of buyers are influenced by}\\ & \text{specification and goodwill}.& \text{advertising and various sales promotional schemes}.\\ \text{Nature of demand}& \text{These products have}& \text{These products have}\\ & \text{derived demand}.& \text{direct demand}.\end{array}$