Consumer Behavior - Classification of Market, Types of goods

Consumer Behavior

Consumer is the final buyers and user of goods and services for the satisfaction of personal wants. Buying implies the exchange of goods and services for cash. Even families with adequate income may lead unsatisfactory living because they do not know how to plan, buy and consume in the best manner. Effective buying of goods and services is an important aid to ensure family's happiness and well-being as well as to improve the Standard of living.

Classification of Market

The buying practice of majority of the consumers is not very satisfactory. This is due to lack of good buymanship. For wise buying every consumer must know to make decisions as to what, when, where and how much to buy goods.

Markets can be classified as following

1.     On the basis of selling area we have local, national and international markets.

2.     On the basis of articles sold we have cotton market, bullion market etc.

3.     On the nature of exchange we have cash market or forward markets.

4.     On the basis of nature of goods we have consumer goods market and industrial goods market.

5.     On the basis of period we have short term and long term markets.

6.     On the basis of nature and magnitude of selling we have wholesale and retail markets.

Types of goods

Based on consumers' buying practice, goods can be classified into three types.

1.     Convenience goods: These goods are bought frequently in small quantities from shop within easy reach. E.g. Newspapers, soap, food articles etc.

2.     Shopping goods: There are two types of shopping goods namely fashion goods and service goods. These goods need some time to shop around and are not urgent purchases. It need not have numerous retail outlets and can be bought at buyer's convenience. E.g. Furniture, jewellery etc.

3.     Speciality goods: These goods are unique and needs shopping efforts. They are sold in speciality shops. E.g. Radio, T.V, cars etc.,