Consumer Goods vs Industrial Goods: Difference and Comparison

All of life can be broken down into a series of transactions. And a majority of these transactions consist of exchanging goods in return for several favorable alternatives such as cash, credit, or different products.

Most of the manufactured products can be categorized into consumer or industrial goods.

Key Takeaways

1. Consumer goods are products intended for personal use, while industrial goods are used for commercial or industrial purposes.
2. Consumer goods are sold directly to consumers, while industrial goods are sold through B2B channels.
3. Consumer goods are less expensive and have a shorter lifespan than industrial goods.

Consumer Goods vs Industrial Goods

Consumer goods are products that individuals purchase for personal use. Industrial goods are products used in producing other goods and services but are not considered capital goods. Consumer goods are intended for immediate use by individuals, unlike industrial goods.

Consumer goods, true to their name, are goods that are produced of satisfying or fulfil consumer wants and desires. These products directly help quench the thirst or needs of the customer.

They are sold through several means and are ultimately marketed to the customers for their final consumption. A few examples of customer goods include food and clothing.

Unlike their counterparts who are directly consumed or used, industrial goods are used in further production. Owing to this reason, they are known as intermediate goods.

According to their name, these goods are used in industries, businesses, and other related organizations to produce goods. Raw materials, machinery, or similar components fall under the industrial goods category.

Comparison Table

Parameters of Comparison	Consumer Goods	Industrial Goods
Definition	The elasticity of the demand for industrial goods is fairly low.	Industrial goods refer to those goods that are used in the making of other goods.
Buyers	There exist several buyers whose locations are scattered across varied regions.	The buyers are few and can be found in concentrated regions.
Elasticity	They have an increased level of demand elasticity.	The value of consumer products is low by comparison.
Value	The market is affected by the change in consumer behaviour.	The value of the purchases bought and sold is high.
Influences	The market is affected by the change in consumer behavior.	It is affected by technological or global changes.

What are Consumer Goods?

As the name suggests, consumer goods refer to goods that are produced to satisfy the customer’s wants and needs.

These are the final goods that are purchased to fulfil the customer and provide them with satisfaction. 

Due to the necessity of these types of goods, they are used across vast expanses of areas. They are bought in a singular or a small amount and have a lesser value.

There exist a large number of sellers dealing in consumer goods. These sellers could be wholesalers, manufacturers, or retailers who can be found in all parts of the country.

Similar to the sellers, there exist an extended amount of buyers for these products. They are the final consumers who purchase this product to satisfy their desire.

They are alternatively known as final goods or end products. Several types of consumer goods exist, namely, durable, non-durable, and customer services.

There are shopping, convenience, speciality, and unsought goods that are classified under consumer goods. 

Consumer goods have a high elasticity of demand and are influenced by human emotions.

The demand for these products is direct as there exist no other fact than the satisfaction of the customer need that induces their purchase.

What are Industrial Goods?

Industrial goods hold their definition in their name. They are goods used for the further making or production of other goods.

This makes industrial goods the intermediate goods that are required in the manufacturing process of goods.

Industrial goods refer to the demand for the customer goods needed.

They are of two types, namely support goods and production goods. Goods that are applied in the production of a final customer product are termed production goods. And goods that help produce consumer goods are called support goods.

Industrial goods are produced to help other production industries, businesses, and related organizations. Industrial interests include raw materials, machinery, machine components, etc., that help production.

The number of buyers present is of a lower number. Similarly, the seller base is relatively low. And the cost of these products is high due to their infrequent purchase and sale. 

They have a demand that is derived from the need for consumer goods.

They have inelastic demand when compared to their counterpart. The factors influencing the demand and supply of these goods are based on substantial technological, legal, and global factors.

Main Differences Between Consumer Goods and Industrial Goods

1. Consumer goods refer to final products that satisfy a consumer’s needs, desires and wants. Industrial goods refer to products that help make or manufacture other goods.
2. The demand for consumer goods is direct, whereas industrial goods are derived.
3. The number of buyers and sellers involved in purchasing and selling consumer and industrial goods is high and low, respectively.
4. The goods the consumers purchase are low in quantity and of little value. Comparatively, industrial goods have a high value.
5. The factors influencing the purchase of consumer goods lie on its buyer. The factors influencing the purchase of industrial goods are technological, legal, or global factors.

References

1. https://journals.sagepub.com/doi/abs/10.1177/002224378502200306
2. https://journals.sagepub.com/doi/abs/10.1177/002224378802500109