Product and price

1 PRODUCT

A product consists of the entire tangible and intangible characteristic provided in an exchange between a seller and a buyer. A product´s characteristic include not only its physical aspects but also its function, brand name, image, packaging, warranty, and price, as well as the provider’s reputation and customer service policy. Because different products are designed for different target markets, they require various pricing, distribution, and promotion decision. Marketers generally divide product into two broad categories:

1.) Consumer products - product used by individuals for personal and family consumption (convenience product, shopping products and specialty products).
Shopping products: an item that buyers will expend time and effort to find and purchase. Consumers gather information about different brand and styles, visit different stores, note prices, read advertisements and consumer guides, and consult family or friends. This category includes goods such as TV sets, VCRs, major appliances, and furniture and services such as dental care, legal advice, and tax preparation.
Specialty products are a product with one or more unique features that a group of buyers will spend consider-able time and effort to purchase. Specialty products can be expensive and unique.