CONSUMER GOODS

Consumer goods are goods or services that are ready for consumption by individuals, social groups, or governmental bodies. Consumer goods are the final result of the production process. Because consumer goods are purchased for personal use, they serve a different purpose than capital goods, which are used by businesses to manufacturer or produce more goods. Consumer goods can be categorized as either durable or non-durable. Durable goods have a long life and are not easily used up or destroyed. Examples of durable goods include stoves, cars, and computers. Generally, durable goods have an expected useful life of more than three years. Durable goods are sometimes called hard goods. By contrast, consumers can easily use up or discard non-durable goods, which are usually perishable in nature. Food, clothing, gasoline, and hair-styling services are all considered to be non-durable. Because of the short-term life of non-durable goods, they need to be purchased frequently.

See also: Capital Goods, Consumption, Durable Goods

con·sum·er goods • pl. n. goods bought and used by consumers, rather than by manufacturers for producing other goods. Often contrasted with capital goods.