{{Short description|Anything that can be offered to a market}} {{Other uses|Product (disambiguation){{!}}Product}} [[File:Fredmeyer edit 1.jpg|thumb|Products on shelves at a Fred Meyer hypermarket superstore]] [[File:Skin care cosmetics.jpg|thumb|Skin care cosmetics for sale as products at a pharmacy in Brazil]] In '''marketing and economics''', a '''product''' is any object, service, or system offered to a market to satisfy a customer’s need or want. Products may be '''tangible''', such as physical goods that can be touched and owned, or '''intangible''', such as services, digital offerings, or rights that provide value without physical form. Products are created through processes of design, production, and distribution, and they play a central role in commercial exchange, consumer behavior, and organizational strategy.
Beyond marketing, the term ''product'' is also used in fields such as '''manufacturing''', where it refers to finished goods derived from raw materials, and '''project management''', where it denotes deliverables produced to achieve defined objectives.<ref name=":1" /> Because products directly affect consumer safety, economic activity, and environmental sustainability, they are often subject to '''regulation, classification systems, and information-disclosure requirements''' across different jurisdictions.
==Product classification== thumb|Eurail, a type of rail pass for multiple journeys by train, an intangible product A product can be classified as tangible or intangible. A tangible product is an actual physical object that can be perceived by touch, such as a building, vehicle, gadget, or clothing. An intangible product is a product that can only be perceived indirectly, such as an insurance policy. These services can be broadly classified under intangible products, which can be durable or nondurable.
===By use=== In its online product catalog, retailer Sears, Roebuck and Company divides its products into "departments", then presents products to potential shoppers according to (1) function or (2) brand. Each product has a Sears item number and a manufacturer's model number. Sears uses the departments and product groupings with the intention of helping customers browse products by function or brand within a traditional department-store structure.<ref name=":1">When an online Sears customer goes to the "Parts and accessories" section of the website to find parts for a particular Sears item, the "model number" field actually requires a Sears item number, not a manufacturer's model number. This is a typical problem with product codes or item codes that are internally assigned by a company but do not conform to an external standard.</ref>
===By association=== A product line is "a group of products which are closely related, either because they function similarly, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges".<ref>{{cite book |last=Kotler |first=Philip |author2=Gary Armstrong |title=Principles of Marketing, fourth edition |publisher=Prentice-Hall, Inc. |year=1989 |pages=639 (glossary definition) |isbn=0-13-706129-3|edition=Annotated Instructor's }}</ref> Many businesses offer a range of product lines (their "product mix") which may be unique to a single organisation or may be common across the business's industry. Within the insurance industry, product lines are indicated by the type of risk coverage, such as auto insurance, commercial insurance, and life insurance.{{citation needed|date=October 2024}} Companies such as Pepsi and Coca-Cola are considered to have a very large and diverse product mix.<ref>{{Cite web |title=PepsiCo Marketing Mix (4Ps) Analysis |url=https://boardmix.com/analysis/pepsico-marketing-mix/#:~:text=PepsiCo's%20product%20lineup%20spans,Tropicana,%20Quaker,%20and%20Cheetos. |access-date=2024-10-12 |website=Boardmix |language=en}}</ref><ref>{{Cite web |title=Product Mix of Coca-Cola {{!}} PDF {{!}} The Coca Cola Company {{!}} Coca Cola |url=https://www.scribd.com/presentation/447029822/PRODUCT-MIX-OF-COCA-COLA |access-date=2024-10-12 |website=Scribd |language=en}}</ref> Some companies use a large product mix to reach a number of market segments.<ref>{{Cite web |title=Product Mix Strategy |url=https://www.productplan.com/glossary/product-mix-strategy/ |access-date=2024-10-12 |website=ProductPlan |language=en-US}}</ref>
In 2002 the US Census compiled revenue figures for the finance and insurance industry by various product lines such as "accident, health and medical insurance premiums" and "income from secured consumer loans".<ref>US Census Bureau (2002), [https://www.census.gov/prod/ec02/ec0252slls.pdf "2002 Economic Census, Finance and Insurance"], p.14</ref>
===National and international product classifications=== Various classification systems for products have been developed for economic statistical purposes. The NAFTA signatories are working on a system that classifies products called NAPCS as a companion to the North American Industry Classification System (NAICS).<ref>[https://www.census.gov/eos/www/napcs/index.html North American Product Classification System], U.S. Census Bureau</ref> The European Union uses a "Classification of Products by Activity" among other product classifications.<ref>[http://ec.europa.eu/eurostat/ramon/nomenclatures/index.cfm?TargetUrl=LST_NOM&StrGroupCode=CLASSIFIC&StrLanguageCode=EN Eurostat classifications] {{webarchive|url=https://web.archive.org/web/20071012145212/http://ec.europa.eu/eurostat/ramon/nomenclatures/index.cfm?TargetUrl=LST_NOM&StrGroupCode=CLASSIFIC&StrLanguageCode=EN |date=2007-10-12 }}, ec.europa.eu.</ref> The United Nations also classifies products for international economic activity reporting.<ref>[http://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=16 United Nations product classifications] {{webarchive|url=https://web.archive.org/web/20070703074531/http://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=16 |date=2007-07-03 }}, unstats.un.org.</ref>
The '''Aspinwall Classification System''' <ref>[http://www.yumpu.com/en/document/view/17341697/social-marketing Leo Aspinwall, 1958] {{webarchive|url=https://web.archive.org/web/20130829162515/http://www.yumpu.com/en/document/view/17341697/social-marketing |date=2013-08-29 }}, Social Marketing AED Resource p. 45</ref><ref>[http://www.sagepub.com/clow/study/articles/PDFs/01_Shaw.pdf A history of schools of marketing thought, Eric H. Shaw, D.G. Brian Jones] {{webarchive|url=https://web.archive.org/web/20101205141121/http://www.sagepub.com/clow/study/articles/PDFs/01_Shaw.pdf |date=2010-12-05 }}, Marketing theory Volume 5(3): 239–281, 2005 SAGE, p. 249</ref> classifies and rates products based on five variables: # Replacement rate (How frequently is the product repurchased?) # Gross margin (How much profit is obtained from each product?) # Buyer goal adjustment (How flexible are the buyers' purchasing habits about this product?) # Duration of product satisfaction (How long will the product produce benefits for the user?) # Duration of buyer search behavior (How long will consumers shop for the product?)
The National Institute of Governmental Purchasing (NIGP)<ref>[http://www.nigp.org National Institute of Governmental Purchasing] {{webarchive|url=https://web.archive.org/web/20081026173727/http://www.nigp.org/ |date=2008-10-26 }}, nigp.org</ref> developed a commodity and services classification system for use by state and local governments, the NIGP Code.<ref>[http://www.nigp.com NIGP Code] {{webarchive|url=https://web.archive.org/web/20081209070611/http://nigp.com/ |date=2008-12-09 }}</ref> The NIGP Code is used by 33 states within the United States as well as thousands of cities, counties, and political subdivisions. The NIGP Code is a hierarchical schema consisting of a 3-digit class, 5-digit class-item, 7-digit class-item-group, and an 11-digit class-item-group-detail.<ref>[http://www.nigp.com/nigp-code-sample-01.jsp NIGP Code sample] {{webarchive|url=https://web.archive.org/web/20081017101312/http://www.nigp.com/nigp-code-sample-01.jsp |date=2008-10-17 }}</ref> Applications of the NIGP Code include vendor registration, inventory item identification, contract item management, spend analysis, and strategic sourcing.
== Product model <span class="anchor" id="Product Model"></span>==
A manufacturer usually provides an identifier for each particular design of product they make, known as a '''model''', '''model variant''', or '''model number''' (often abbreviated as '''MN''', '''M/N''' or '''model no.''', and sometimes as M- or Mk). For example, Dyson Ltd, a manufacturer of appliances (mainly vacuum cleaners), requires customers to identify their model in the support section of the website.<ref>[http://www.english.dysoncanada.ca/support/help.asp?article=32 Dyson: Help with your Dyson] {{webarchive|url=https://web.archive.org/web/20110827002857/http://www.english.dysoncanada.ca/support/help.asp?article=32 |date=2011-08-27 }}</ref> Brand and model can be used together to identify products in the market. The model number is not necessarily the same as the manufacturer part number (MPN).<ref>SOTW, Celebird, et al. [http://www.google.com/support/forum/p/base/thread?tid=15712f8613820165&hl=en "Model Number Vs. MPN"] {{webarchive|url=https://web.archive.org/web/20110927042816/http://www.google.com/support/forum/p/base/thread?tid=15712f8613820165&hl=en |date=2011-09-27 }}. ''Google Merchant Center: Help forum''. August 31, 2009, accessed September 6, 2011.</ref>
Because of the huge amount of similar products in the automotive industry, there is a special kind of defining a car with options (marks, attributes) that represent the characteristics of the vehicle. A model of a car is defined by some basic options like body, engine, gearbox, and axles. The variants of a model (often called the '''trim levels''') are built with some additional options like color, seats, wheels, mirrors, other trims, entertainment, and assistant systems, etc. Options that exclude each other (pairwise) build an option family. That means that you can choose only one option for each family, and you have to choose exactly one option.
In addition, a specific unit of a product is often (and in some contexts must be) identified by a serial number, which is necessary to distinguish products with the same product definition. In the case of automotive products, it is called the vehicle identification number (VIN), an internationally standardised format.
==Product information== {{See also|Product analysis}} Product information, beyond currency price information, can include:<ref name="978-0-262-03492-0">{{cite book |last1=Sarokin |first1=David |last2=Schulkin |first2=Jay |title=Missed Information: Better Information for Building a Wealthier, More Sustainable Future |date=26 August 2016 |publisher=MIT Press |isbn=978-0-262-03492-0 |page=100 |url=https://books.google.com/books?id=8toPDQAAQBAJ&pg=PA100 |language=en}}</ref>{{additional citation needed|date=November 2022}} {{columns-list|colwidth=20em| * Product description – typically on a label on or packaging of the product or in an online shopping website for it * Certificates – including related to sustainability and for unobservable quality attributes<ref>{{cite journal |last1=Jahn |first1=Gabriele |last2=Schramm |first2=Matthias |last3=Spiller |first3=Achim |title=The Reliability of Certification: Quality Labels as a Consumer Policy Tool |journal=Journal of Consumer Policy |date=1 March 2005 |volume=28 |issue=1 |pages=53–73 |doi=10.1007/s10603-004-7298-6 |s2cid=154681347 |language=en |issn=1573-0700}}</ref> * Various types of ratings, comparisons, third-party information, and customer reviews – including user reviews * Labels<ref>{{cite journal |last1=Horne |first1=Ralph E. |title=Limits to labels: The role of eco-labels in the assessment of product sustainability and routes to sustainable consumption |journal=International Journal of Consumer Studies |date=March 2009 |volume=33 |issue=2 |pages=175–182 |doi=10.1111/j.1470-6431.2009.00752.x |language=en}}</ref><ref>{{cite book |last1=Rubik |first1=Frieder |last2=Frankl |first2=Paolo |title=The Future of Eco-labelling: Making Environmental Product Information Systems Effective |date=29 September 2017 |publisher=Routledge |isbn=978-1-351-28079-2 |url=https://books.google.com/books?id=5G1QDwAAQBAJ |language=en}}</ref><ref>{{cite book |last1=Lusk |first1=Jayson L. |last2=Roosen |first2=Jutta |last3=Shogren |first3=Jason |title=The Oxford Handbook of the Economics of Food Consumption and Policy |date=8 September 2011 |publisher=OUP Oxford |isbn=978-0-19-956944-1 |url=https://books.google.com/books?id=B3UUYFNnWbEC |language=en}}</ref> – such as energy rating labels * Information about ingredients * Visual content * Place/region and company of origin * Estimated expiration date * Safety information * Nutrition information, mainly contained macronutrients }} Many of these types of product information are regulated to some degree, such as to some degree prohibiting false or misleading product information or requiring sellers or manufacturers to specify various information, such as ingredients of food, pharmaceutical, and hygiene products. There is also standardization. Marketing to entice the shopper<ref name="978-0-262-03492-0"/> is often prioritized over accurate, high-quality, or extensive and relevant information.
Product information is often a key element in the buyer decision process. Relevant factors include trust in the accuracy of the information and social normative pressure.<ref>{{cite journal |last1=Sayogo |first1=Djoko Sigit |last2=Zhang |first2=Jing |last3=Picazo-Vela |first3=Sergio |last4=Bahaddin |first4=Babak |last5=Luna-Reyes |first5=Luis |title=Understanding the Intention to Trust Product Information and Certifications to Promote Sustainable Consumption: Applying the Theory of Planned Behavior |date=January 2018 |pages=5412–5421 |url=https://eprints.umm.ac.id/46626/ |publisher=University of Hawaii at Manoa |language=en}}</ref><ref>{{cite journal |last1=Rupprecht |first1=Christoph D. D. |last2=Fujiyoshi |first2=Lei |last3=McGreevy |first3=Steven R. |last4=Tayasu |first4=Ichiro |title=Trust me? Consumer trust in expert information on food product labels |journal=Food and Chemical Toxicology |date=1 March 2020 |volume=137 |article-number=111170 |doi=10.1016/j.fct.2020.111170 |pmid=32014536 |s2cid=211025095 |language=en |issn=0278-6915|doi-access=free }}</ref> Easily accessible and up-to-date medicinal product information can contribute to the health literacy.<ref>{{cite web |title=Electronic product information: From principles to actions |url=https://www.efpia.eu/publications/downloads/regulatory-policy/electronic-product-information-from-principles-to-actions/ |website=www.efpia.eu |access-date=4 November 2022}}</ref> Online shopping is usually more informationally rich than shopping at physical stores, traveled to, and usually has higher comparability and customizability.<ref name="978-0-262-03492-0"/>
Production information-related developments can be useful for enabling, facilitating, or shifting towards sustainable consumption and supporting more sustainable productss. Environmental life-cycle assessment (LCA) has been widely used to assess environmental impacts across the life cycle of products.<ref>{{cite journal |last1=Troullaki |first1=Katerina |last2=Rozakis |first2=Stelios |last3=Kostakis |first3=Vasilis |title=Bridging barriers in sustainability research: Α review from sustainability science to life cycle sustainability assessment |journal=Ecological Economics |date=1 June 2021 |volume=184 |article-number=107007 |doi=10.1016/j.ecolecon.2021.107007 |bibcode=2021EcoEc.18407007T |s2cid=233550701 |language=en |issn=0921-8009|url=https://zenodo.org/record/5075694 }}</ref> There are LCA datasets that assess all products in some supermarkets in a standardized way.<ref>{{cite news |title=These are the UK supermarket items with the worst environmental impact |url=https://www.newscientist.com/article/2332392-these-are-the-uk-supermarket-items-with-the-worst-environmental-impact/ |access-date=14 September 2022 |work=New Scientist}}</ref><ref>{{cite journal |last1=Clark |first1=Michael |last2=Springmann |first2=Marco |last3=Rayner |first3=Mike |last4=Scarborough |first4=Peter |last5=Hill |first5=Jason |last6=Tilman |first6=David |last7=Macdiarmid |first7=Jennie I. |last8=Fanzo |first8=Jessica |last9=Bandy |first9=Lauren |last10=Harrington |first10=Richard A. |title=Estimating the environmental impacts of 57,000 food products |journal=Proceedings of the National Academy of Sciences |date=16 August 2022 |volume=119 |issue=33 |article-number=e2120584119 |doi=10.1073/pnas.2120584119 |pmid=35939701 |pmc=9388151 |bibcode=2022PNAS..11920584C |language=en |issn=0027-8424|doi-access=free}}</ref> Consumers may seek reliable information to evaluate relevant characteristics of products such as durability and reliability.<ref>{{cite book |last1=Levin |first1=Mark A. |last2=Kalal |first2=Ted T. |title=Improving Product Reliability: Strategies and Implementation |date=25 July 2003 |publisher=John Wiley & Sons |isbn=978-0-470-86449-4 |url=https://books.google.com/books?id=ORUgQAU18eAC |language=en}}</ref> Development of 'transparency by design' scenarios have been suggested to "complement the physical product with layers of digital information", improving transparency and traceability (T&T).<ref>{{cite journal |last1=Barata |first1=João |last2=da Cunha |first2=Paulo Rupino |title=Augmented product information: crafting physical-digital transparency strategies in the materials supply chain |journal=The International Journal of Advanced Manufacturing Technology |date=1 February 2021 |volume=112 |issue=7 |pages=2109–2121 |doi=10.1007/s00170-020-06446-9 |s2cid=234046442 |language=en |issn=1433-3015|hdl=10316/115189 |hdl-access=free }}</ref> The app CodeCheck gives some smartphone users some capability to scan products for assessed ingredients.<ref>{{cite web |last1=Mulka |first1=Angela |title=Apps for Earth Day: 5 options to keep your green goals |url=https://www.sfgate.com/news/article/Earth-Day-apps-eco-conscious-apps-17108115.php |website=SFGATE |access-date=26 May 2022 |date=21 April 2022}}</ref><ref>{{cite news |last1=Frangoul |first1=Anmar |title=How tech is helping to change the way people think about the food on their plate |url=https://www.cnbc.com/2020/04/03/how-tech-is-helping-to-change-the-way-we-think-about-food.html |access-date=4 November 2022 |work=CNBC |language=en}}</ref> Many labels are considered to be flawed and few have the time to "study the true environmental impact of every purchase". Full product transparency is a concept of making the full life-cycle impacts public.<ref>{{cite news |last1=Arratia |first1=Ramon |title=Full product transparency gives consumers more informed choices |url=https://www.theguardian.com/sustainable-business/blog/full-product-transparency-life-cycle-consumers |access-date=4 November 2022 |work=The Guardian |date=18 December 2012 |language=en}}</ref> An important element that is required for various product information is supply chain transparency, which relates to human rights and supply chain sustainability.<ref>{{cite journal |last1=Mollenkopf |first1=Diane A. |author-link=Diane Mollenkopf |last2=Peinkofer |first2=Simone T. |last3=Chu |first3=Yu ( Jade) |date=June 2022 |title=Supply chain transparency: Consumer reactions to incongruent signals |url=https://scholarworks.uni.edu/facpub/5262 |journal=Journal of Operations Management |language=en |volume=68 |issue=4 |pages=306–327 |doi=10.1002/joom.1180 |issn=0272-6963 |s2cid=248198930|url-access=subscription }}</ref><ref>{{cite web |title=Supply chain transparency, explained |url=https://mitsloan.mit.edu/ideas-made-to-matter/supply-chain-transparency-explained |website=MIT Sloan |date=20 February 2020 |access-date=4 November 2022 |language=en}}</ref>
===Produce traceability=== {{Excerpt|Produce traceability|paragraphs=1-2}}
===Product passports=== In the EU, under the renewed Sustainable Product Policy Initiative, the inclusion of a Digital Product Passport has been proposed.<ref>{{cite web |url=https://ec.europa.eu/environment/circular-economy/pdf/leading_way_global_circular_economy.pdf |title=Leading the way in the global circular economy |website=European Commission |access-date=14 March 2022}}</ref><ref>{{cite web |url=https://www.epc.eu/en/events/Digitalisation-for-a-circular-economy-A-driver~30dbd0 |title=Digitalisation for a circular economy |website=European Policy Centre |access-date=14 March 2022}}</ref> A material passport is a document consisting of all the materials that are included in a product or construction. It consists of a set of data describing defined characteristics of materials in products, useful for recovery, recycling, re-use, and various evaluations. They may contribute to a more circular economy.
===Product information management=== {{Excerpt|Product information management|paragraphs=1}}
==See also== * Builder's plate * Manufacturer part number
==References== {{Reflist|2}}
== Further reading == *{{cite book|title=Product Lifecycle Management: Volume 1: 21st Century Paradigm for Product Realisation|last=Stark|first=John|publisher=Springer|year=2015|isbn=978-3-319-17439-6|url=https://books.google.com/books?id=UyFHvgAACAAJ}}
==External links== *{{Wikiquote-inline|Merchandise}} *{{Commons category-inline|Products}}
{{Authority control}}
{{DEFAULTSORT:Product (Business)}} Category:Product Category:Business terms Category:Product management