A good is something which is tangible or which can be seen which is different from service which cannot be seen. Goods can be classified as either consumer goods or Industrial Goods. Given below are some of the differences between consumer and industrial goods –
- The consumer goods are those which are meant for final consumption by the consumer, or in simple words they are used by the consumers directly while industrial goods are those which are not used by the consumers directly but these goods are used for the production of consumer goods.
- Bread, Soap, furniture are some of the examples of consumer goods, while lubricants, copper, timber, tools etc…are some examples of industrial goods.
- While the number of customers for consumer goods is very large but the quantity purchased by them is less whereas the number of customers for industrial goods is less but they purchase the quantities in bulk.
- The demand for consumer goods is autonomous demand as these goods are demanded for ultimate consumption while the demand for industrial goods is derived demand as these industrial goods are used for the production of consumer goods.
- While the market in which the companies can sell consumer goods is large because of large number of customers whereas in case of Industrial goods the market is small because of less number of buyers of such goods.