Explain any six characteristics of Industrial Product.

Answer – Industrial products are purchased for further production or business use rather than final personal consumption.

Categories: materials and parts become part of the output; capital items support production, such as buildings and equipment; supplies and business services support operations, such as lubricants, maintenance and professional advice.

Characteristics: relatively few but larger buyers; geographically concentrated demand in many industries; derived demand depending on final consumer demand; technical considerations in purchase; reciprocal buying in some markets; professional buying; often shorter distribution channels and greater importance of personal selling or leasing.

For example, demand for steel used in cars depends partly on demand for cars. The same item can be consumer or industrial depending on its purpose: a computer bought for home use differs from one bought to operate a business.

Materials and parts include raw materials, manufactured materials and component parts. Capital items include installations, such as buildings and major equipment, and accessory equipment. Supplies include operating supplies and maintenance items; business services include maintenance, repair and advisory services.