Course Hero 27

Course Hero 27 - non-durable goods because they are used up...

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1 . Name and describe the three groups products can be classified into according to durability and tangibility . Products can be classified into three groups according to their durability or tangibility: 1. Nondurable goods are tangible goods that are normally consumed in one or few uses. Examples are Beer, Toothpaste, Sugar, Soap and Salt. Because these goods are consumed fast and purchased frequently by the consumers, the appropriate strategy is to make them available in many locations, charge only a small markup, and advertise heavily to induce trial and build preference. Many fast foods fall into this category. 2. Durable goods are tangible goods that normally survive many uses. Goods that fall under this category include furniture, refrigerator, clothing, rug and etc. They are not frequently purchased as
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Unformatted text preview: non-durable goods because they are used up slowly. Durable products normally require personal selling and service, command a higher margin, and require more seller guarantees. 3. Services are intangible, inseparable, variable, and perishable products. As a result, they normally require more quality control, supplier credibility, and adaptability. These are activities, benefits or satisfactions that are offered for sale. Examples are haircuts, repairs, banking services and dry cleaning. They are usually produced and consumed in the same time frame unlike durable goods or non-durable goods that can be produced and shelved. The producer of goods may be far away from consumers, but service providers often work in the presence of the customers....
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This note was uploaded on 08/29/2011 for the course ECON 530 taught by Professor Smith during the Spring '11 term at Berklee.

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