Quiz 14: Products and Services for Businesses

Business

Consumer goods stand for the goods that are brought by the consumers and are used directly by them. These goods are not further used in manufacturing other goods and are directly used and consumed by the end user. Example- shampoos, cookies etc. Industrial goods stands for the goods that are installed and situated in industries like machineries, manufacturing plants, materials, or any other good or component that is used by the industries to create or manufacture other goods. The basic difference between consumer goods and industrial goods is that consumer goods are ready for consumption and satisfies the human wants; while industrial goods are not ready for consumption as they act as the support system in the manufacturing of consumer goods. Consumer goods mostly do not provide support for the creation or manufacturing of other products; while industrial goods are meant specifically for the production of other goods. The implications of consumer goods and industrial goods in international marketing is that when an organization starts a business venture in foreign countries, consumer goods are marketed and sold completely depending upon the needs and desires of the population in the foreign countries; similarly industrial goods like machineries and plants are installed and planned so that it act as a support system for the manufacturing of consumer goods.

Industrial goods stands for the goods that are installed and situated in industries like machineries, manufacturing plants, materials, or any other good or component that is used by the industries to create or manufacture other goods. The five stages of economic development are- traditional society; transitional society; take-off; drive to technological maturity; and high mass consumption. The various stages of economic development affecting the demand for industrial goods could be explained by stating that at the time of traditional society, wants and desire of people were limited so the production of industrial goods; but when the traditional society became transitional society, people started demanding for large number of consumer goods which naturally gave rise to industrial goods. Later, when society took a take-off and had become highly demanding, the industrial goods were largely manufactured so that increasing demand of the consumer goods could be satisfied by supplying required amount of goods. At the stage of technological maturity and high mass consumption; the need for consumer goods rapidly increased and become complex due to which industries started making technological advances and thereby provided by huge amount of consumption of consumer goods. This way the stages of economic development affected the demand for industrial goods.

Industrial goods stands for the goods that are installed and situated in industries like machineries, manufacturing plants, materials, or any other good or component that is used by the industries to create or manufacture other goods. The statement "Industrialization is typically a national issue, and industrial goods are the fodder for industrial growth" could be explained by stating that the various stages of economic development affected the demand for industrial goods since the time when the world followed a traditional society system wherein wants and desire of people were limited so the production of industrial goods; but when the traditional society became transitional society, people started demanding for large number of consumer goods which naturally gave rise to industrial goods. Later, when society took a take-off and had become highly demanding, the industrial goods were largely manufactured so that increasing demand of the consumer goods could be satisfied by supplying required amount of goods. At the stage of technological maturity and high mass consumption; the need for consumer goods rapidly increased and become complex due to which industries started making technological advances and thereby provided by huge amount of consumption of consumer goods. This way it could be concluded that with rapid industrialization and the persistence to meet the ever increasing demand for consumer goods, increased focus was given towards industry development which resulted in the large skill creation of industrial goods providing high rate of economic development.