Product and its properties

The product and its properties are one of the fundamental concepts in all modern economic science. They operate on such industries as commodity production, marketing, micro- and macroeconomics and other subsections of this science. Initially, the notion of goods was preceded by the concept of good, which has a broader definition. Usually it meant everything that had the property of satisfying the emerging human needs. This could be both objects of labor and gifts of nature, and their ability to be the subject of trade did not matter, therefore for economic science this interpretation was too broad and generalized.

The concept of the commodity, which arose somewhat later, is focused exclusively on the economy. It is understood to mean everything that has the property of satisfying human needs in any other field and at the same time can be the subject of exchange or sale transactions. In this case, the origin of this object does not matter - the product can be both the result of human activities, and have a natural origin.

In other words, the goods and their properties should be such that any subject of economic activity can acquire this benefit to meet their personal needs.

What can be the cost of the goods?

Usually in everyday life, under the cost, it is customary to understand the price to be paid for owning a particular product. But economic science distinguishes two main types of value: consumer and exchange.

Under the former, it is usually customary to understand the value of a commodity in the eyes of potential consumers, that is, the ability of a particular thing or service to satisfy a person 's need. In other words, this is the utility of the product for the client, that is, what marketing is most often oriented at.

By exchange value is understood a certain generalized proportion, according to which some goods can be exchanged for others. As the equivalent of the exchange value is the currency of money, which is a universal way of determining the average exchange value of the commodity.

The product and its properties in modern marketing

In order to be able to be represented in the market and reach a potential consumer, the goods in the modern economy must necessarily have five inalienable characteristics:

- a certain level of quality;

- individual design, reflecting its specificity;

- a certain set of properties inherent only in this product;

- branded name;

- packaging, which has specific differences.

The quality level is considered determinative for any product, because not only the exchange value of a specific service or thing depends solely on it, but also the success of its promotion on the market.

In order to be successful and to allow its producer to receive a constant income, the product and its properties should favorably differ from the analogues offered by competitors. In the conditions of constant economic growth and increase in supply, the consumer strives to choose the highest quality goods with as many functions as possible.

In addition, important components of the product are such components as utility and rarity. These concepts are fundamental for determining the value of consumer goods, so the exchange value even for the most useful goods does not necessarily reflect the real amount of the costs of its production. Often the usefulness of inexpensive, but vital goods will be much higher than the utility of luxury goods, which has a huge material value.