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What is a commodity?

First of all, it is necessary to learn to distinguish between the categories of "good", "product" and "product". We give a definition of what is a commodity.

Definition

Good can not always be classified as a commodity. For example, if it is not the result of labor; if the good cannot be sold, then there is no demand; if the benefit is produced specifically for own consumption, that is, without subsequent sale or exchange. It can be argued that the product - it is a blessing, the purpose of production of which is the implementation to ensure the needs of people.

At first glance, the product and product seem to be identical concepts. But no. The path of the goods to the consumer passes through the market necessarily, while the product can be specially produced for personal consumption. The service is a commodity, but not a product. Services, due to their specificity, are intangible, non-accumulative, and immediately accessible during production.

Product Properties

Categories such as “value”, “utility” and “value” are characteristic of goods.The concept of value consists of the following two aspects:

  1. Useful blessings. It is the ability to meet specific human needs.
  2. Cost of goods The amount invested in the production of material resources and effort.

Simply put, utility is a synthesis of results and costs.

The concept of value is also ambiguous. There are consumer and exchange value. Consumer value is characterized by the presence of useful properties of the product to meet the needs of a particular person, society as a whole. An example would be any useful item or food.

Exchange value - the required amount of one product to exchange for a certain amount of another product. The most striking example of exchange value is money. Yes, money is a commodity. Their quantity, which is necessary for exchanging for another commodity, determines its exchange value.

The usefulness of a product is a purely subjective assessment, expressed in the necessity of owning a certain type of product by a specific person. For example, tobacco will be of high utility for a smoker, whereas for a non-smoker, he is of no interest.

Product groups

Goods can be divided into the following groups by type of consumption and characteristics:

Production purposes

  • capital goods with a service life of one year or more;
  • short-term use with a limited and sufficiently short service life, which does not exceed one year.

Intangible goods

They are also allocated in a separate group, which includes money, rights, information, services.

Consumer goods

From a marketing point of view, consumer goods are divided into:

  • daily demand (first necessity) - acquired by consumers systematically. They are characterized by low cost, constant availability. This may include products, detergents; laundry services, hairdresser ...;
  • long-term use - things for making a decision on the acquisition of which, the consumer spends a lot of time. Bought over a long period of time. These are: furniture, stylish clothes, lawyer services. Separately, it is worth remembering about household appliances, since recently a separate category of goods has emerged here - technically complex.For example, a mobile phone is a technically complex product.
  • Special assortment - expensive things for the designated category of consumers. Products of historical, collection value; jewelry.
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