Question 3 OR (a)

The concept of a product, and consumer products classified by durability and shopping effort

8 marks

Time to write: About 16 minutes
Topic: Product: concept, levels, mix

Question

Question 3 OR (a) · 8 marks

Define the concept of a product. On the basis of durability and shopping efforts, classify and differentiate consumer products. Give examples.

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

16 minfor 8 marks

Read from the question

Define…Give…2 asks, each with its own marks below. Answer both.
examplesExamples are asked for: one short example with each point.

Write it in this order

Read; underline the asks; jot your points 1 min
1 Concept of a product 2 marks 2 min
2 Classification by durability and by shopping effort, with differences and examples 6 marks 12 min
Check: every ask answered, key terms underlined 1 min

Easy marks

Concept of a product (step 1, 2 marks): a clear definition and a line on what it covers. It opens the answer, so it takes a minute or two.

Short on time? Cut step 2 short rather than leave anything out.

Try it first. About 16 minutes for 8 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

Concept of a product

In marketing, a product is whatever a firm offers to buyers to meet a need or want: a physical good, a service, or an idea, place or experience. The concept covers not only the physical product but the benefits the customer gets from it, and the extended offer of after-sales service, complaint handling and spare parts. Customers buy a bundle of benefits rather than a mere object: a buyer of a refrigerator buys fresh food and convenience, along with the brand, warranty and after-sales service. A product can be seen at three levels: the core benefit, the actual product (features, quality, design, brand, packaging) and the augmented product (installation, delivery, credit, warranty, service).

NCERT classifies consumer products on exactly these two bases, durability and the shopping effort involved.

Classification by durability

Durable goods. Physical goods that give service over a long life and are bought rarely, often after deliberation. Examples: refrigerators, furniture, cars, washing machines. Marketing needs: demonstration and personal selling, warranties and after-sales service; the margin per unit is higher.
Services. Benefits or activities that cannot be touched or stored and are produced as they are used, so their quality varies with the provider. Examples: haircuts, banking, repairs. Marketing needs: control of quality, the provider's reputation and flexibility in meeting each customer.
Non-durable goods. Physical goods used up quickly and bought again and again. Examples: soap, toothpaste, biscuits, milk. Marketing needs: presence in as many shops as possible, a thin margin on each unit and constant advertising to keep buyers coming back.

Classification by shopping effort

Basis	Convenience products	Shopping products	Specialty products	Unsought products
Meaning	Bought often, immediately and with little effort	Compared carefully on quality, price and style	Have unique features or brand identity for which buyers make a special effort	Not known, or known but not normally thought of buying
Buying behaviour	Habitual; little planning or comparison	Much planning, visits to several shops	Strong brand preference and loyalty; little comparison	Little awareness or interest until a need arises
Price	Low	Higher	High	Varies
Distribution	Wide, many outlets	Selective, fewer outlets	Exclusive, one or few outlets per area	Varies
Promotion	Mass advertising by the maker	Advertising and personal selling by maker and retailer	Targeted promotion by maker and retailer	Aggressive advertising and personal selling
Examples	Salt, matchboxes, bread	Sarees, laptops, sofas	Luxury watches, designer wear, premium cars	Life insurance, blood donation, a new type of fire extinguisher

NCERT's scheme has the first three classes; marketing texts following Kotler add the fourth, unsought products. Convenience products are further divided into staples (bought regularly), impulse products (bought without planning, such as chewing gum at a counter) and emergency products (an umbrella in sudden rain).

Conclusion

Classifying products by durability and by shopping effort helps marketers decide how widely to distribute, how much to spend on promotion and what price and service level to set.

Where the 8 marks sit

#	Component	Marks
1	Concept of a product	2
2	Classification by durability and by shopping effort, with differences and examples	6
	Total	8

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