A commodity is an economic good produced for exchange . The product has two features: exchange and consumer value.
Consumer value
This concept denotes the ability of things to satisfy
human needs, i.e. their usefulness. Consumer value has the following characteristics:
- The usefulness of a product is determined by its properties.
- Consumer value is characterized by quality, quantity, natural form.
- The usefulness of the product lies in the product or service itself.
- It is necessary to raise the question “is this product in demand?”.
- A need can be met in several ways.
- A product is a common good, and consumer value is of a social nature.
- Consumer value may not depend on the amount of labor.
- The consumer value of services does not have a material form.
Exchange value
Under the exchange value is understood the ability of things to exchange for other things in certain quantities. This is done if the goods have different consumer value. Exchange proportions are the costs of mental and physical abilities of producers for the production of goods. Things are exchanged according to the amount of labor expended.
Product classification
All products are divided into two large groups: industrial, individual consumption.
Individual consumer goods can be: long-term, short-term use, services and goods of an exclusive assortment.
Industrial goods are materials and parts, auxiliary materials and services, capital construction.
Key Product Features
Product competitiveness is the ability of tangible and intangible assets to be attractive compared to similar products, due to its characteristics and consumer ratings. This property is highly regarded by manufacturers. It depends on him whether the product or service will be sold on the market and how successfully. In turn, the profit of the enterprise producing the goods depends on this.
Various measures are taken to increase the competitiveness of the product: quality improvement, marketing activities, including advertising.
A product is a set of indicators that characterize its competitiveness. They can be divided into:
- Characterizing the price. These are indicators characterizing the economic properties of the product.
- Characterizing quality, i.e. consumer properties, from which as a result a useful effect is formed. This is a set of “soft” and “hard” indicators.
"Hard" indicators are divided into the following groups:
- technical - the functions and properties of the goods that determine its scope, as well as ergonomic and technical indicators;
- regulatory - indicators that determine the conformity of the product with international standards, standards that apply in the market.
A product is a necessary thing for everyone’s life. It can play a different role, but it is always created exclusively for human consumption and to satisfy its needs.