consumer good

▪ economics

      in economics, any tangible commodity produced and subsequently purchased to satisfy the current wants and perceived needs of the buyer (consumption). Consumer goods are divided into three categories: durable goods, nondurable goods, and services.

      Consumer durable goods have a significant life span, often three years or more (although some authorities classify goods with life spans of as little as one year as durable). As with capital goods (tangible items such as buildings, machinery, and equipment produced and used in the production of other goods and services), the consumption of a durable good is spread over its life span, which tends to create demand for a series of maintenance services. The similarities in the consumption and maintenance patterns of durable and capital goods sometimes obscure the dividing line between the two. The longevity and the often higher cost of durable goods usually cause consumers to postpone expenditures on them, which makes durables the most volatile (or cost-dependent) component of consumption. Common examples of consumer durable goods are automobiles, furniture, household appliances, and mobile homes. (See also capital.)

      Consumer nondurable goods are purchased for immediate or almost immediate consumption and have a life span ranging from minutes to three years. Common examples of these are food, beverages, clothing, shoes, and gasoline.

      Consumer services are intangible products or actions that are typically produced and consumed simultaneously. Common examples of consumer services are haircuts, auto repairs, and landscaping.

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