A commodity is an economic good

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

Consumer cost

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 the product is determined by its properties.
2. Consumer value is characterized by quality, quantity, natural form.
3. The usefulness of the goods is in the product itself or service.
4. It is necessary to ask the question "is this product in demand?".
5. The need can be met in several ways.
6. Goods are a common good, and consumer value has a social character.
7. Consumer value may not depend on the amount of labor.
8. The consumer cost of services is not material.

Exchange value

By exchange value is understood the ability of things to exchange for other things in certain quantities. This is done if the goods have different consumer value. The exchange proportions are the costs of the intellectual and physical abilities of producers for the production of 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.

The goods of individual consumption can be: long-term, short-term use, services and goods of exclusive assortment.

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

The most important characteristics of the product

Competitiveness of goods is the ability of material and non-material values to be attractive in comparison with similar products, thanks to their characteristics and consumer estimates. This property is highly valued by manufacturers. It depends on it whether the product or service will be sold on the market and how successfully. In turn, the profit of the enterprise that produces the goods depends on this.

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

A commodity 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 goods.
2. Characterizing the quality, i.e. Consumer properties, of which the result is a useful effect. This is a set of "soft" and "hard" indicators.

"Hard" indicators are divided into the following groups:

• Technical - the functions and properties of goods, determining its scope, as well as ergonomic and technical indicators;
• Normative - indicators, which determine the conformity of the goods to international standards, regulations that operate on the market.

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