What Are Consumer Goods?

Consumer goods are products bought for consumption by the average consumer. Also called final goods, consumer goods are the end result of production and manufacturing. Clothing, food products, and dishwashers are examples of common consumer goods.

The Consumer Product Safety Act of 1972 regulates the sale of most common consumer goods and created the U.S. Consumer Product Safety Commission, a group of five appointed officials who oversee the safety of products and issue necessary recalls of faulty consumer products.

Types of Consumer Goods

Consumer goods—also called retail goods—include nearly all retail products sold. These goods are manufactured with the intention of selling them to the final consumer. Durable goods are consumer goods that have a life span of over three years and are used repeatedly over time. Bicycles and refrigerators are considered durable goods. Consumer staples such as food, beverage, personal hygiene, and clothing products are frequently bought consumer goods.

Nondurable goods are consumed in less than three years, are commonly used one time, and include packaged food and drinks or laundry detergent. Service goods include items like auto repairs and haircuts that are intangible consumer goods.

Marketing Consumer Goods

How the consumer views and uses a product determines the way that companies market their goods. Convenience goods are those that are regularly consumed and are readily available for consumer purchase. They are often nondurable goods and low-priced items sold by wholesalers and retailers. Examples of convenience goods include milk and tobacco products.

Shopping goods are those items bought less frequently. They are more durable and are commonly more expensive than convenience goods. Examples of shopping goods include furniture and televisions.

Specialty consumer goods are rare and often considered luxury purchases. They are often marketed by brand or geared to a niche market. Sports cars and fine art are examples of specialty consumer goods.

Unsought consumer goods are readily available but not often sought by the consumer. Although they may be necessary purchases, they require marketing to consumers to nudge a purchase. Examples of unsought consumer goods include life insurance and pre-paid funeral expenses.

The Bottom Line

A consumer good, or final good, is the end product a business produces that is purchased by a consumer. Consumer goods can be classified as durable, non-durable, or services. Marketing of consumer goods depends upon the use, price, and features of the item. The Consumer Product Safety Act of 1972 and the U.S. Consumer Product Safety Commission ensure that consumer protections are in place for the goods that are available on the market.