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What are industrial products? How are they different from consumer products? Explain.

Answer»

Industrial products are those products, which are used as inputs in providing other products e.g., raw material, engines, tools, lubricants etc.

BasisConsumer productIndustrial product
BuyerConsumer is the buyerIndustrial units and the processors are the buyers
MotiveIt is purchased for personal consumptionIt is bought and used for making other products
Number of buyersNumber of buyers of consumer products is largeNumber of buyers is limited in case of industrial product

 

The difference between consumer products and industrial products is based on their ultimate use and nature of purchases.


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