Yellow, red and orange goods

Last updated August 06, 2023

Yellow, red and orange goods are a three-part classification for consumer goods which is based on consumer buying habits, the durability of the goods, and the ways that the goods are sold.^[1] The classifications are for yellow goods, red goods, and orange goods, with orange goods being goods that have a mix of yellow and red characteristics.^[1] The classification of goods into yellow, red, and orange categories is roughly equivalent to the categories of shopping goods, convenience goods, and specialty goods.^[1]

Yellow goods

Yellow goods (also called "shopping goods" or "white goods") are durable consumer items such as large household appliances that have a long period of useful life, and which are replaced rarely.^[2] While yellow goods are sold in low volumes, they have high profit margins.^[2] Yellow goods have a higher unit value than convenience goods and people buy them less often; as such consumers spend more time comparison shopping for yellow goods than for red goods. As well, there is a much greater role for personal selling (from salespeople) for yellow goods than for red goods, and there is more selective distribution of yellow goods.^[1] Yellow goods often need to be adjusted or customized by the store before they are delivered to the customer.^[1]

The consumer goods term "yellow goods" is different from the construction and agricultural industry term of the same name, which refers to bulldozers, tractors, and similar equipment.

Red goods

Red goods (also called "convenience goods") such as food are consumed completely when the consumer uses them; as a result, they are replaced frequently and sold in high volumes.^[2] Red goods have low profit margins.^[2] Red goods need heavy advertising and competitive pricing, along with a well-developed selling organization to manage the widespread and numerous points of sale.^[1] As red goods are widely available through a wide distribution network, consumers do not have to spend much time searching for them.^[1]

Orange goods

Orange goods (also called "specialty goods") are moderately durable goods that wear out with regular use and have to be replaced, such as clothing.^[2] Orange goods are unique, so consumers need to make more effort to acquire these items; as such exclusive distributor arrangements and franchises are often used to sell them.^[1]

Related Research Articles

A convenience store, bodega, convenience shop, corner store or corner shop is a small retail store that stocks a range of everyday items such as coffee, groceries, fruits, vegetables, snacks, confectionery, soft drinks, ice creams, tobacco products, lottery tickets, over-the-counter drugs, toiletries, newspapers and magazines. In some jurisdictions, convenience stores are licensed to sell alcoholic drinks, although many jurisdictions limit such beverages to those with relatively low alcohol content, like beer and wine. The stores may also offer money order and wire transfer services, along with the use of a fax machine or photocopier for a small per-copy cost. Some also sell tickets or recharge smart cards, e.g. OPUS cards in Montreal or include a small deli. They differ from general stores and village shops in that they are not in a rural location and are used as a convenient supplement to larger stores.

A supermarket is a self-service shop offering a wide variety of food, beverages and household products, organized into sections. This kind of store is larger and has a wider selection than earlier grocery stores, but is smaller and more limited in the range of merchandise than a hypermarket or big-box market. In everyday U.S. usage, however, "grocery store" is often used to mean "supermarket".

Shopping is an activity in which a customer browses the available goods or services presented by one or more retailers with the potential intent to purchase a suitable selection of them. A typology of shopper types has been developed by scholars which identifies one group of shoppers as recreational shoppers, that is, those who enjoy shopping and view it as a leisure activity.

<span class="mw-page-title-main">Grocery store</span> Retail store that primarily sells food and other household supplies

A grocery store (AE), grocery shop (BE) or simply grocery is a foodservice retail store that primarily retails a general range of food products, which may be fresh or packaged. In everyday U.S. usage, however, "grocery store" is a synonym for supermarket, and is not used to refer to other types of stores that sell groceries. In the UK, shops that sell food are distinguished as grocers or grocery shops.

A grey market or dark market is the trade of a commodity through distribution channels that are not authorized by the original manufacturer or trade mark proprietor. Grey market products are products traded outside the authorized manufacturer's channel.

A loss leader is a pricing strategy where a product is sold at a price below its market cost to stimulate other sales of more profitable goods or services. With this sales promotion/marketing strategy, a "leader" is any popular article, i.e., sold at a low price to attract customers.

Used goods mean any item of personal property offered for sale not as new, including metals in any form except coins that are legal tender, but excluding books, magazines, and postage stamps. Used goods may also be handed down, especially among family or close friends, as a hand-me-down.

Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine, which displays the same product's availability and pricing at different e-retailers. As of 2020, customers can shop online using a range of different computers and devices, including desktop computers, laptops, tablet computers and smartphones.

Fast-moving consumer goods (FMCG), also known as consumer packaged goods (CPG), are products that are sold quickly and at a relatively low cost. Examples include non-durable household goods such as packaged foods, beverages, toiletries, candies, cosmetics, over-the-counter drugs, dry goods, and other consumables.

<span class="mw-page-title-main">Final good</span> Commodity which is produced and subsequently consumed by the consumer

A final good or consumer good is a final approval with what product they need ready for sale that is used by the consumer to satisfy current wants or needs, which is used to produce other goods. A car,truck, or a bicycle is a good, but the parts purchased to manufacture them are intermediate goods.

The throw-away society is a generalised description of human social concept strongly influenced by consumerism, whereby the society tends to use items once only, from disposable packaging, and consumer products are not designed for reuse or lifetime use. The term describes a critical view of overconsumption and excessive production of short-lived or disposable items over durable goods that can be repaired, but at its origins, it was viewed as a positive attribute.

Consignment is a process whereby a person gives permission to another party to take care of their property and retains full ownership of the property until the item is sold to the final buyer. It is generally done during auctions, shipping, goods transfer, or putting something up for sale in a consignment store. The owner of the goods pays the third-party a portion of the sale for facilitating the sale. Consignors maintain the rights to their property until the item is sold or abandoned. Many consignment shops and online consignment platforms have a set day limit before an item expires for sale. Within the time of contract, reductions of the price are common to promote the sale of the item, but vary on the type of item sold (usually 60–90 days).

Visual Merchandising is the practice in the retail industry of optimizing the presentation of products and services to better highlight their features and benefits. The purpose of such visual merchandising is to attract, engage, and motivate the customer towards making a purchase.

A marketing channel consists of the people, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption. It is the way products get to the end-user, the consumer; and is also known as a distribution channel. A marketing channel is a useful tool for management, and is crucial to creating an effective and well-planned marketing strategy.

Customer to customer markets provide a way to allow customers to interact with each other. Traditional markets require business to customer relationships, in which a customer goes to the business in order to purchase a product or service. In customer to customer markets, the business facilitates an environment where customers can sell goods or services to each other. Other types of markets include business to business (B2B) and business to customer (B2C).

Everyday low price is a pricing strategy promising consumers a low price without the need to wait for sale price events or comparison shopping. EDLP saves retail stores the effort and expense needed to mark down prices in the store during sale events, and is also believed to generate shopper loyalty. It was noted in 1994 that the Walmart retail chain in the United States, which follows an EDLP strategy, would buy "feature advertisements" in newspapers on a monthly basis, while its competitors would advertise weekly. Other firms that have implemented or promoted EDLP are Procter & Gamble, Food Lion, Gordmans and Winn-Dixie.

Recommerce or reverse commerce is the selling of previously owned, new or used products, mainly electronic devices or media such as books, through physical or online distribution channels to buyers who repair, if necessary, then reuse, recycle or resell them.

Speciality goods are a class of consumer goods. Consumer goods can be categorized into convenience goods, shopping goods, and specialty goods. The classification scheme is based on the way consumers purchase. This system is based on the definition that convenience and speciality goods are both purchased with a predetermined pattern in mind. In the case of the convenience good, the pattern is that the most accessible brand will be purchased; in the case of a speciality good, the pattern is that only a specific brand will be purchased. For example, if the customer utilizes an outlet because it is the most accessible, it would be considered, for that customer at least, a convenience store; while one in which the consumer shops even if he has to go considerably out of his way to reach it, would be considered a speciality store. A shopping good is one in which the consumer does not have a predetermined pattern in mind. Likewise, a shopping store is one which the consumer will undertake a search to select a store to patronize.

There are many types of e-commerce models', based on market segmentation, that can be used to conducted business online. The 6 types of business models that can be used in e-commerce include: Business-to-Consumer (B2C), Consumer-to-Business (C2B), Business-to-Business (B2B), Consumer-to-Consumer (C2C), Business-to-Administration (B2A), and Consumer-to-Administration

The retail format influences the consumer's store choice and addresses the consumer's expectations. At its most basic level, a retail format is a simple marketplace, that is; a location where goods and services are exchanged. In some parts of the world, the retail sector is still dominated by small family-run stores, but large retail chains are increasingly dominating the sector, because they can exert considerable buying power and pass on the savings in the form of lower prices. Many of these large retail chains also produce their own private labels which compete alongside manufacturer brands. Considerable consolidation of retail stores has changed the retail landscape, transferring power away from wholesalers and into the hands of the large retail chains.

References

1 2 3 4 5 6 7 8 Baker, Michael J. Marketing Strategy and Management (5th Edition). MacMillan International Higher Education, 2014
1 2 3 4 5 Kroon, Richard W. A/V A to Z: An Encyclopedic Dictionary of Media, Entertainment and other Audiovisual Terms. McFarland, 2010. p. 111

This article related to microeconomics is a stub. You can help Wikipedia by expanding it.

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.

[baker-1] 1 2 3 4 5 6 7 8 Baker, Michael J. Marketing Strategy and Management (5th Edition). MacMillan International Higher Education, 2014

[kroon-2] 1 2 3 4 5 Kroon, Richard W. A/V A to Z: An Encyclopedic Dictionary of Media, Entertainment and other Audiovisual Terms. McFarland, 2010. p. 111

[1]

[2]