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6 Types of products and their classifications

The next time you ask yourself what a product is, the best thing to do is to look around you, the answer will be there.

The thing is, not all of them comply with the same type or fall into the same classification.

Get to know the types of products and their classifications, with everyday examples for a better understanding.

Types of products
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Table of Contents

What is a product?

Within the terms of economics, the definition of product is handled as the result that is obtained from the production process that is fulfilled within a company.

This leads us to consider as such everything that is produced, or what results from production processes. Everything that is exchanged in the market is also considered a product.

Cosmetic products

Types of products and their classifications

To help us create a much more complete idea of what a product is, let’s look at the types of products according to their classifications, so that we are able to organize them just by knowing what their market intention is:

Product Goods

Goods are those products that are characterized by the fact that when they are purchased by a consumer he acquires ownership of them. In cases where a service is required, for example, only a need is satisfied and the consumer does not become the owner.
For example, it may be a car which will obviously serve to satisfy the need for transportation.

But in the case that a person buys it for his own use, he would not only be satisfying the need, but would also become the owner of the vehicle in question. 

On the other hand, if what is being requested is an Uber, although it may be the same car, the same brand, in this case it is only satisfying a need for transportation to a destination, at no time the property becomes acquired, so what is being purchased is a service.

Tangible and Intangible Products

The types of tangible products are those that represent a good that has physical or material existence, so that the person is entitled to request to see it, touch it, or perceive it with any of the senses by which it is capable.

At the opposite extreme we find intangible products, which is nothing more than that which we cannot see or touch, but which is still capable of satisfying a need as the previous one.

For example, we can mention a tangible product such as a shirt, where it is possible to appreciate its color, feel its texture, the variety of its size, its design, among other aspects that are part of its characteristics.

On the other hand, an example of what would be an intangible product is a communication or electric power service, where we do not appreciate them in a physical way, but they help us to fully cover our needs.

Consumer Products

When we talk about a consumer product, we are referring to a product which, after we have covered our needs, will disappear completely. Or it will lose the characteristics that made it ideal to meet the purpose for which it was designed.

Now, speaking specifically of consumer products, these are those that are able to solve a need, but still maintain the characteristics that make them ideal because they can be used on more than one occasion.

An example of a consumer product can be a hamburger, which after satisfying a customer’s hunger disappears. One can also think of disposable products such as condoms, which are used only once.

On the other hand, an example of a usage product can be a computer or a telephone, which can be used an infinite number of times and will still maintain the characteristics that make them ideal for satisfying our needs.

Raw materials, semi-finished and finished products

In this case, the types of products are as follows:

  • Raw materials. They are all those products which cannot be consumed in their original state, but must be transformed for their use. An example would be PAN flour, since no one eats it in its original state.
  • Semi-finished product. These are products that are almost ready for consumption, but it is necessary for the consumer to carry out some process in order to make them usable. For example, a furniture store that sells them in pieces and it is the consumer's job to put them together for later use.
  • Finished product. These are products that are completely ready to be used when they are put on the market. In this case we can speak of a television set, for example.

Household and industrial products

When we speak of products for domestic or industrial use, we are referring to the same type, and the only difference in this case is who is the consumer of the product, who uses it.

For example, a shampoo can be for domestic use if it is purchased by a family for personal hygiene purposes.

But it can be transformed for industrial use in those cases where it is used in a beauty salon either as part of its services or commercialized.

Conviction, comparison and convenience products

To close the types of products and their classifications we have the following:

  • Conviction products. This is a product with a high price, where people are convinced of its quality and the benefits they are acquiring. An example of this is a Rolex.
  • Comparison products. These are products where consumers compare prices and qualities before proceeding with the purchase. A clear example of this would be comparison products.
  • Convenience products. They are usually low-priced, and that is usually the reason why many people do not take a lot of time for the purchase. Such as, for example, a box of matches.
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