Page 1
IntroductIon Product classification helps the retailers to focus on
the consumers’ buying behaviour. The retail businesses
use the consumers’ buying behaviour for designing the
marketing strategies to increase the sale of goods.
The types of products, and how the firms buy these
goods is equally important as the firm classifies these
products and develops the marketing campaigns for
increasing the sales.
In the retail industry, the store operations assistant
has the knowledge of processing the goods at the retail
store. Generally, a manual is prepared by the retail store
highlighting the procedures and policies for receiving
and delivering goods. These procedures and policies are
usually common for all stores.
The store operations assistants should check their
store’s policy for receiving and delivering goods.
All type of businesses, especially retail stores, must
store goods safely, as well as ensure that the firm
fulfils the legal duty to protect the health and safety
of those affected by their business. The right approach
to storage can also help firm owners in reducing
pollution, unnecessary wastage and other costs.
This unit has been divided into four sessions. The
first session is devoted to classification which includes
Receiving and
Storage of Goods
2
Page 2
IntroductIon Product classification helps the retailers to focus on
the consumers’ buying behaviour. The retail businesses
use the consumers’ buying behaviour for designing the
marketing strategies to increase the sale of goods.
The types of products, and how the firms buy these
goods is equally important as the firm classifies these
products and develops the marketing campaigns for
increasing the sales.
In the retail industry, the store operations assistant
has the knowledge of processing the goods at the retail
store. Generally, a manual is prepared by the retail store
highlighting the procedures and policies for receiving
and delivering goods. These procedures and policies are
usually common for all stores.
The store operations assistants should check their
store’s policy for receiving and delivering goods.
All type of businesses, especially retail stores, must
store goods safely, as well as ensure that the firm
fulfils the legal duty to protect the health and safety
of those affected by their business. The right approach
to storage can also help firm owners in reducing
pollution, unnecessary wastage and other costs.
This unit has been divided into four sessions. The
first session is devoted to classification which includes
Receiving and
Storage of Goods
2
Receiving and StoRage of g oodS
25
Convenience
Goods
Shopping
Goods
Specialty
Goods
Types of
Goods
Consumer
Goods
Industrial
Goods
Durable
Goods
Semi-durable
Goods
Non-durable
Goods
Materials and
Parts
Capital
Goods
Supplies
Industrial
Services
consumer goods, the second session covers the procedure
for receiving goods in retail operations, the third session
deals with storage of goods received, and the fourth
session explains the process of handling goods.
SeSSIon 1: c laSSIfIcatIon of GoodS
Meaning of goods
Goods are bundle of utilities, which are inherently
useful and relatively scarce tangible item, such as
article, commodity, merchandise, material, supply,
wares, produced from agricultural, manufacturing,
construction or mining activities. In terms of economics,
it is called commodity.
There are two kinds of goods—economical
and free goods. Goods that can be obtained
with money are called economical goods
and goods which are freely available are
called free goods.
Types of goods
There are two types of goods
which are dealt with in
retail operations—consumer
goods and industrial goods
(Fig. 2.1)
Consumer goods
Consumer goods are those
which are ready for consumption
by consumers, such as clothing
or food (Fig. 2.2[a], 2.2[b], 2.2[c], and
2.2[d]).
Further, the types of consumer goods have
been classified below:
(a) Convenience goods: Goods which are easily
available to the consumer, without any extra effort
are called convenience goods. These goods are
consumed regularly and purchased frequently. For
example, Fast Moving Consumer Goods (FMCG),
such as food, confectionaries, milk, etc.
Fig. 2.1 Types of Goods
Page 3
IntroductIon Product classification helps the retailers to focus on
the consumers’ buying behaviour. The retail businesses
use the consumers’ buying behaviour for designing the
marketing strategies to increase the sale of goods.
The types of products, and how the firms buy these
goods is equally important as the firm classifies these
products and develops the marketing campaigns for
increasing the sales.
In the retail industry, the store operations assistant
has the knowledge of processing the goods at the retail
store. Generally, a manual is prepared by the retail store
highlighting the procedures and policies for receiving
and delivering goods. These procedures and policies are
usually common for all stores.
The store operations assistants should check their
store’s policy for receiving and delivering goods.
All type of businesses, especially retail stores, must
store goods safely, as well as ensure that the firm
fulfils the legal duty to protect the health and safety
of those affected by their business. The right approach
to storage can also help firm owners in reducing
pollution, unnecessary wastage and other costs.
This unit has been divided into four sessions. The
first session is devoted to classification which includes
Receiving and
Storage of Goods
2
Receiving and StoRage of g oodS
25
Convenience
Goods
Shopping
Goods
Specialty
Goods
Types of
Goods
Consumer
Goods
Industrial
Goods
Durable
Goods
Semi-durable
Goods
Non-durable
Goods
Materials and
Parts
Capital
Goods
Supplies
Industrial
Services
consumer goods, the second session covers the procedure
for receiving goods in retail operations, the third session
deals with storage of goods received, and the fourth
session explains the process of handling goods.
SeSSIon 1: c laSSIfIcatIon of GoodS
Meaning of goods
Goods are bundle of utilities, which are inherently
useful and relatively scarce tangible item, such as
article, commodity, merchandise, material, supply,
wares, produced from agricultural, manufacturing,
construction or mining activities. In terms of economics,
it is called commodity.
There are two kinds of goods—economical
and free goods. Goods that can be obtained
with money are called economical goods
and goods which are freely available are
called free goods.
Types of goods
There are two types of goods
which are dealt with in
retail operations—consumer
goods and industrial goods
(Fig. 2.1)
Consumer goods
Consumer goods are those
which are ready for consumption
by consumers, such as clothing
or food (Fig. 2.2[a], 2.2[b], 2.2[c], and
2.2[d]).
Further, the types of consumer goods have
been classified below:
(a) Convenience goods: Goods which are easily
available to the consumer, without any extra effort
are called convenience goods. These goods are
consumed regularly and purchased frequently. For
example, Fast Moving Consumer Goods (FMCG),
such as food, confectionaries, milk, etc.
Fig. 2.1 Types of Goods
Store o perationS a SSiStant – ClaSS iX
26
Convenience goods can be classified into Staple
Goods and Impulse Goods.
(i) Staple goods: Goods which fulfill the customer’s
basic needs are called staple goods. For example,
bread, butter, milk, sugar, etc.
(ii) Impulse goods: Goods which are bought without
prior planning are called impulse goods. For
example, chocolates, soft drinks, wafers, etc.
(b) Shopping goods: Shopping goods are not
purchased or consumed as frequently by
consumers as convenience goods. Shopping goods
are expensive and semi-durable in nature. For
example, clothes, footwear, televisions, radio,
home furnishings, jewellery, etc.
(c) Specialty goods: Goods which are unique,
unusual, and special are called specialty goods.
For example, antique goods, high and luxury
automobiles, wedding dresses, etc.
(d) Unsought goods: Goods that are available in the
market but the customers do not know about them
or do not think of buying them unless needed, are
called Unsought goods, such as insurance.
Apart from the above mentioned, retail goods are
also classified into durable, semi-durable and non-
durable goods.
(a) Durable goods: Goods which need not be purchased
frequently as they are made to last for a longer
period of time are called durable goods (Fig. 2.3).
Fig. 2.2 (c) Consumer Goods
Fig. 2.2 (d) Consumer Goods
Fig. 2.2 (a) Consumer Goods Fig. 2.2 (b) Consumer Goods
Page 4
IntroductIon Product classification helps the retailers to focus on
the consumers’ buying behaviour. The retail businesses
use the consumers’ buying behaviour for designing the
marketing strategies to increase the sale of goods.
The types of products, and how the firms buy these
goods is equally important as the firm classifies these
products and develops the marketing campaigns for
increasing the sales.
In the retail industry, the store operations assistant
has the knowledge of processing the goods at the retail
store. Generally, a manual is prepared by the retail store
highlighting the procedures and policies for receiving
and delivering goods. These procedures and policies are
usually common for all stores.
The store operations assistants should check their
store’s policy for receiving and delivering goods.
All type of businesses, especially retail stores, must
store goods safely, as well as ensure that the firm
fulfils the legal duty to protect the health and safety
of those affected by their business. The right approach
to storage can also help firm owners in reducing
pollution, unnecessary wastage and other costs.
This unit has been divided into four sessions. The
first session is devoted to classification which includes
Receiving and
Storage of Goods
2
Receiving and StoRage of g oodS
25
Convenience
Goods
Shopping
Goods
Specialty
Goods
Types of
Goods
Consumer
Goods
Industrial
Goods
Durable
Goods
Semi-durable
Goods
Non-durable
Goods
Materials and
Parts
Capital
Goods
Supplies
Industrial
Services
consumer goods, the second session covers the procedure
for receiving goods in retail operations, the third session
deals with storage of goods received, and the fourth
session explains the process of handling goods.
SeSSIon 1: c laSSIfIcatIon of GoodS
Meaning of goods
Goods are bundle of utilities, which are inherently
useful and relatively scarce tangible item, such as
article, commodity, merchandise, material, supply,
wares, produced from agricultural, manufacturing,
construction or mining activities. In terms of economics,
it is called commodity.
There are two kinds of goods—economical
and free goods. Goods that can be obtained
with money are called economical goods
and goods which are freely available are
called free goods.
Types of goods
There are two types of goods
which are dealt with in
retail operations—consumer
goods and industrial goods
(Fig. 2.1)
Consumer goods
Consumer goods are those
which are ready for consumption
by consumers, such as clothing
or food (Fig. 2.2[a], 2.2[b], 2.2[c], and
2.2[d]).
Further, the types of consumer goods have
been classified below:
(a) Convenience goods: Goods which are easily
available to the consumer, without any extra effort
are called convenience goods. These goods are
consumed regularly and purchased frequently. For
example, Fast Moving Consumer Goods (FMCG),
such as food, confectionaries, milk, etc.
Fig. 2.1 Types of Goods
Store o perationS a SSiStant – ClaSS iX
26
Convenience goods can be classified into Staple
Goods and Impulse Goods.
(i) Staple goods: Goods which fulfill the customer’s
basic needs are called staple goods. For example,
bread, butter, milk, sugar, etc.
(ii) Impulse goods: Goods which are bought without
prior planning are called impulse goods. For
example, chocolates, soft drinks, wafers, etc.
(b) Shopping goods: Shopping goods are not
purchased or consumed as frequently by
consumers as convenience goods. Shopping goods
are expensive and semi-durable in nature. For
example, clothes, footwear, televisions, radio,
home furnishings, jewellery, etc.
(c) Specialty goods: Goods which are unique,
unusual, and special are called specialty goods.
For example, antique goods, high and luxury
automobiles, wedding dresses, etc.
(d) Unsought goods: Goods that are available in the
market but the customers do not know about them
or do not think of buying them unless needed, are
called Unsought goods, such as insurance.
Apart from the above mentioned, retail goods are
also classified into durable, semi-durable and non-
durable goods.
(a) Durable goods: Goods which need not be purchased
frequently as they are made to last for a longer
period of time are called durable goods (Fig. 2.3).
Fig. 2.2 (c) Consumer Goods
Fig. 2.2 (d) Consumer Goods
Fig. 2.2 (a) Consumer Goods Fig. 2.2 (b) Consumer Goods
Receiving and StoRage of g oodS
27
Fig. 2.3 Durable goods Fig. 2.4 Semi-durable Products
Fig. 2.5 (a) and (b) Non-durable
Products
(a)
(b)
(b) Semi-Durable Consumer Goods: Goods
that do not last for a very long time are
called semi-durable goods (Fig. 2.4). For
example, clothes, furniture, footwear,
jewellery, home furnishings, etc.
(c) Non-Durable Consumer Goods: Goods
which are for immediate consumption and
are perishable in nature are called non-
durable goods (Fig. 2.5[a] and 2.5[b]). For
example, vegetables, fruits, milk, bread,
etc.
Industrial goods
A retail organisation buys goods for further
production or use in business, these are called
industrial goods. Industrial goods are not for
ultimate consumption but are components used
by industries or firms for producing finished
goods (Fig. 2.6[a], 2.6[b] and 2.6[c].
These can be divided into three parts—
Materials and Parts, Capital Items, Supplies
and Industrial Services.
(a) Materials and parts: It is the basic unit
of industrial production. It is used for
producing finished goods.
(b) Capital goods: Capital goods make the
functioning of an organisation smooth. For
example, office accessories.
Fig. 2.6 (a) Industrial Products
Page 5
IntroductIon Product classification helps the retailers to focus on
the consumers’ buying behaviour. The retail businesses
use the consumers’ buying behaviour for designing the
marketing strategies to increase the sale of goods.
The types of products, and how the firms buy these
goods is equally important as the firm classifies these
products and develops the marketing campaigns for
increasing the sales.
In the retail industry, the store operations assistant
has the knowledge of processing the goods at the retail
store. Generally, a manual is prepared by the retail store
highlighting the procedures and policies for receiving
and delivering goods. These procedures and policies are
usually common for all stores.
The store operations assistants should check their
store’s policy for receiving and delivering goods.
All type of businesses, especially retail stores, must
store goods safely, as well as ensure that the firm
fulfils the legal duty to protect the health and safety
of those affected by their business. The right approach
to storage can also help firm owners in reducing
pollution, unnecessary wastage and other costs.
This unit has been divided into four sessions. The
first session is devoted to classification which includes
Receiving and
Storage of Goods
2
Receiving and StoRage of g oodS
25
Convenience
Goods
Shopping
Goods
Specialty
Goods
Types of
Goods
Consumer
Goods
Industrial
Goods
Durable
Goods
Semi-durable
Goods
Non-durable
Goods
Materials and
Parts
Capital
Goods
Supplies
Industrial
Services
consumer goods, the second session covers the procedure
for receiving goods in retail operations, the third session
deals with storage of goods received, and the fourth
session explains the process of handling goods.
SeSSIon 1: c laSSIfIcatIon of GoodS
Meaning of goods
Goods are bundle of utilities, which are inherently
useful and relatively scarce tangible item, such as
article, commodity, merchandise, material, supply,
wares, produced from agricultural, manufacturing,
construction or mining activities. In terms of economics,
it is called commodity.
There are two kinds of goods—economical
and free goods. Goods that can be obtained
with money are called economical goods
and goods which are freely available are
called free goods.
Types of goods
There are two types of goods
which are dealt with in
retail operations—consumer
goods and industrial goods
(Fig. 2.1)
Consumer goods
Consumer goods are those
which are ready for consumption
by consumers, such as clothing
or food (Fig. 2.2[a], 2.2[b], 2.2[c], and
2.2[d]).
Further, the types of consumer goods have
been classified below:
(a) Convenience goods: Goods which are easily
available to the consumer, without any extra effort
are called convenience goods. These goods are
consumed regularly and purchased frequently. For
example, Fast Moving Consumer Goods (FMCG),
such as food, confectionaries, milk, etc.
Fig. 2.1 Types of Goods
Store o perationS a SSiStant – ClaSS iX
26
Convenience goods can be classified into Staple
Goods and Impulse Goods.
(i) Staple goods: Goods which fulfill the customer’s
basic needs are called staple goods. For example,
bread, butter, milk, sugar, etc.
(ii) Impulse goods: Goods which are bought without
prior planning are called impulse goods. For
example, chocolates, soft drinks, wafers, etc.
(b) Shopping goods: Shopping goods are not
purchased or consumed as frequently by
consumers as convenience goods. Shopping goods
are expensive and semi-durable in nature. For
example, clothes, footwear, televisions, radio,
home furnishings, jewellery, etc.
(c) Specialty goods: Goods which are unique,
unusual, and special are called specialty goods.
For example, antique goods, high and luxury
automobiles, wedding dresses, etc.
(d) Unsought goods: Goods that are available in the
market but the customers do not know about them
or do not think of buying them unless needed, are
called Unsought goods, such as insurance.
Apart from the above mentioned, retail goods are
also classified into durable, semi-durable and non-
durable goods.
(a) Durable goods: Goods which need not be purchased
frequently as they are made to last for a longer
period of time are called durable goods (Fig. 2.3).
Fig. 2.2 (c) Consumer Goods
Fig. 2.2 (d) Consumer Goods
Fig. 2.2 (a) Consumer Goods Fig. 2.2 (b) Consumer Goods
Receiving and StoRage of g oodS
27
Fig. 2.3 Durable goods Fig. 2.4 Semi-durable Products
Fig. 2.5 (a) and (b) Non-durable
Products
(a)
(b)
(b) Semi-Durable Consumer Goods: Goods
that do not last for a very long time are
called semi-durable goods (Fig. 2.4). For
example, clothes, furniture, footwear,
jewellery, home furnishings, etc.
(c) Non-Durable Consumer Goods: Goods
which are for immediate consumption and
are perishable in nature are called non-
durable goods (Fig. 2.5[a] and 2.5[b]). For
example, vegetables, fruits, milk, bread,
etc.
Industrial goods
A retail organisation buys goods for further
production or use in business, these are called
industrial goods. Industrial goods are not for
ultimate consumption but are components used
by industries or firms for producing finished
goods (Fig. 2.6[a], 2.6[b] and 2.6[c].
These can be divided into three parts—
Materials and Parts, Capital Items, Supplies
and Industrial Services.
(a) Materials and parts: It is the basic unit
of industrial production. It is used for
producing finished goods.
(b) Capital goods: Capital goods make the
functioning of an organisation smooth. For
example, office accessories.
Fig. 2.6 (a) Industrial Products
Store o perationS a SSiStant – ClaSS iX
28
(c) Supplies: Supplies meet the day-to-day operation
but do not become a part of the finished product.
(d) Industrial services: Industrial services are used
in running a business smoothly. Industrial services
can be available internally and externally, such as
maintenance services, repair services, machinery
repair and business advisory services.
Fig. 2.6 (b) Industrial Products Fig. 2.6 (c) Industrial Products
Activity 1
Chart out consumer goods from allotted goods.
Materials required
Allotted goods, boxes for allotment of goods.
Procedure
1. Divide students into different groups.
2. Provide allotted goods and relevant boxes for separation to
each group.
3. Ask each group to separate the consumer goods from the
allotted goods.
4. Put the separated goods into relevant boxes.
5. Ask each group to separate the convenience, shopping,
speciality, durable, semi-durable and non-durable goods.
6. Put the separated convenience, shopping, speciality, durable,
semi-durable and non-durable goods in relevant boxes again.
From this practical exercise students should understand the
different types of goods.
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