Characteristics of Industrial Products - QS Study
QS Study

The important characteristics of industrial products are given below:

  1. Limited number of Buyers: When compared to customer and farming goods, the number of buyers of industrial goods is limited. Such buyers are also found in certain regions. For example, sugarcane is purchased by few producers of sugar, but sugar, which is a consumer product, is purchased by huge amount of people.
  2. Shorter channel of distribution: Because of partial number of buyers, the sale of industrial products is usually made with facilitate of shorter channels of distribution, means, direct selling or one point channel.
  3. Geographic awareness: Because of position of industries at convinced points or regions, industrial markets are greatly determined, geographically.
  4. Derived Demand: The demand for industrial products is derived from the demand for consumer products. For example, the demand for leather will be derived from demand for shoes and other leather products in the market.
  5. Reciprocal Buying: Some big companies from basic industries like oil, steel, rubber, and medicines resort to the practice of reciprocal buying.
  6. Inelastic demand: The demand for industrial goods is relatively inelastic, i.e., it is not affected by changes in price.