Question

How are industrial products different from consumer products? Explain.

Answer 1

The following points highlight the difference between industrial products and consumer products.

Basis of Difference	Industrial Products	Consumer Products
Number of Customers	The number of customers is limited. For instance, oilseeds (industrial products) are used mostly by the producers of mustard oil.	The number of customers is higher. For instance, mustard oil (consumer product) is consumed by many people.
Channel of Distribution	Such products requires shorter channels of distribution such as direct selling or one level channel.	Such products require comparatively longer channels before they reach the final consumer. However, the channel of distribution for perishable consumer products is small.
Location	Industrial products remain concentrated only in those areas where the industries producing these goods are located.	Consumer products are readily and conveniently available.
Demand	Demand for industrial products is a derived demand based on the demand for consumer products.	Demand for a consumer product is not a derived demand rather sets the basis for the demand for industrial products.
Role of Technical Features in Decision Making	Technical features play an important role while purchasing these products	Such products do not involve any technical complexities in manufacturing. Thereby, technical features does not have much role in the decision making while purchasing.