Definition
Industrial products are goods that are destined to be sold primarily for use in producing other goods or rendering services as contrasted with goods destined to be sold primarily to the ultimate consumer. They include accessory equipment; installations; component parts; maintenance, repair, and operating items and supplies; raw materials; and fabricating materials.
The distinguishing characteristic of industrial goods is the purpose for which they are to be used, i.e., in carrying on business or industrial activities rather than for consumption by individual ultimate consumers or resale to them. The category also includes merchandise destined for use in carrying on various types of institutional enterprises.
Relatively few goods are exclusively industrial products. The same article may, under one set of circumstances, be an industrial good, and under other conditions, a consumer good.[1]
References
- ^ American Marketing Association, AMA Dictionary.