PART ONE
· Look at the statements below and the five introductions for goods.
· Which introduction A, B, C, D or E does each statement 1-8 refer to
· For each statement 1-8, mark one letter A, B, C, D or E.
· You will need to use some of these letters more than once.
A.
Shopping goods aren’t bought very often, are bought only after the consumer has compared their features with those of competing brands, and are found in only a few stores in one area. These goods usually have a higher unit price than convenience goods, and an individual salesperson, rather than a cashier, may be needed to sell them. Examples of shopping goods are automobiles, furniture, men’s suits, ladies’ wear, shoes, and major appliances.
B.
Specialty goods like prestige automobiles, photographic equipment, fine jewelry, and high-fashion clothing and furniture are bought by consumers after a special shopping effort. They are bought infrequently and are generally available only in exclusive outlets. They’re usually high-priced, but price isn’t the main consideration of a consumer buying them. A consumer is often willing to go out of the way to find a certain brand.
Specialty goods prove the point that goods are often considered not just for their physical qualities but also for the economic utility, ego enhancement, status, and satisfaction they carry with them. For example, when people buy a new car, they may want it not just for basic transportation but also for recognition, status, or prestige.
You’ve probably figured out that this classification of consumer goods is far from rigid. It may differ according to buyers’ intent or wishes. As consumers’ incomes and buying habits change, or as prices drop, goods shift from one classification to another. Usually they shift downward, from the specialty to the shopping, or from the shopping to the convenience goods category. Television sets became shopping goods years ago. When microwave ovens first came on the market, they were regarded by many as an expensive new toy a kind of specialty goods-for the rich. Now they’re considered indispensable shopping goods by working couples and single people who buy them to save cooking time.
C.
Durable goods can be further classified as either consumer goods or industrial goods, each of which requires a different set of marketing strategies. Consumer goods are used by the consumer or household that buys them and come in a ready-to-use form that calls for no further industrial or commercial processing. On the basis of how much effort a consumer takes to obtain them, consumer goods can be further subdivided into (1) convenience goods, (2) shopping goods, and (3) specialty goods.
D.
Durable goods have physical qualities and uses that permit them to last a relatively long time, even while being used. They’re designed to be used up over an extended period of time and are made of materials that will take considerable wear and tear. For example, you probably own such durable goods as a car, tape deck, cassette player, TV set, or stereo that should remain usable for several years—or at least until the warranty runs out. Houses are built to last thirty to fifty years or more. Refrigerators and mattresses both have a life expectancy of about twenty years, and quality jewelry, silverware, china, and furniture are frequently handed down from one generation to the next.
The fact that a product is durable influences its whole marketing strategy. Obviously, goods like these are packaged differently, sold more personally and aggressively, and priced higher than a tube of toothpaste or a bottle of shampoo.
E.
Instead of being bought by the ultimate consumer, industrial goods are used by businesses to produce other goods or to provide services to consumers. These goods are usually bought by institutions such as manufacturers, utilities, government agencies, contractors, wholesalers, retailers, hospitals, and schools that use them in producing their own products or services. Buyers of these goods usually provide prospective suppliers with a description of the product or service and request that bids or price quotations be submitted. The buying decision is usually based on technical performance, cost, or expected monetary gain.
There are many types of industrial goods, but the most common ones are (a) raw materials, (b) component parts, (c) installations, (d) transportation systems, (e) tools, (f) equipment, (g) materials, and (h) supplies. This kind of goods have physical qualities and uses that permit them to last a long rime.