A good is an economic good

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

A commodity is an economic good produced for exchange. A product has two features: exchange value and use value.

User value

This concept denotes the ability of things to satisfy human needs, i.e. their usefulness. The consumer value has the following characteristics:

1. The usefulness of a product is determined by its properties.
2. User value is characterized by quality, quantity, natural form.
3. The usefulness of a product lies in the product or service itself.
4. It is necessary to ask the question “is this product in demand?”.
5. There are several ways to satisfy a need.
6. Commodity is a common good, and use value is social.
7. Use value may not depend on the amount of labor.
8. The customer value of services has no material form.

Exchange value

Under the exchange value understand 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 andthe physical ability of producers to produce goods. Things are exchanged according to the amount of labor expended.

Classification of goods

All goods are divided into two large groups: industrial use, individual consumption.

Private consumer goods can be: durable, short-term use, services and goods of an exclusive range.

Industrial goods are materials and parts, auxiliary materials and services, capital construction.

The most important product features

The competitiveness of a product is the ability of tangible and intangible values to be attractive compared to similar products, due to their characteristics and consumer assessments. This property is highly valued 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.

To increase the competitiveness of the goods, various measures are taken: quality improvement, marketing activities, including advertising.

A product is a set of indicators that characterize its competitiveness. They can be divided into:

1. Characterizing the price. These are indicators that characterize the economic properties of the product.
2. Characterizing quality, i.e. consumer properties, which result in a beneficial effect. This is a set of "soft" and "hard" indicators.

"Hard" indicators are divided into the following groups:

• technical - the functions and properties of the product that determine its scope, as well as ergonomic and technical indicators;
• regulatory - indicators by which the conformity of the goods to international standards, regulations that are in force on the market.

A product is a necessary thing for everyone's life. It can act in different roles, but it is always created solely for human consumption and satisfaction of its needs.