Product and its properties

The Product and its properties are one of the fundamental concepts in all of modern economic science. They operate on industries such as commodity production, marketing, micro - and macroeconomics and other branches of the said science. Initially, the concept of the product was preceded by the concept of the benefit of having a broader definition. Usually, it was understood by all that had the ability to meet human needs. It could be both objects of work and the gifts of nature, their ability to be traded didn't matter, so economic science is this interpretation was too broad and generalized.

The Concept of the product that emerged later, focused exclusively on the economy. Under it is commonly understood everything that tends to satisfy human needs in a given field, and thus can be the subject of exchange transactions or sales. The origin of this object is irrelevant – the product can be as a result of human activities, and have a natural origin.

In Other words, the goods and its properties must be such that any economic entity could acquire this benefit to meet their personal needs.

What could be the cost of goods?

In daily life, the cost is commonly understood as the price to be paid for the possession of a particular product. But economic science distinguishes two fundamental types of value: customer and exchange.

At first often taken to mean the value of a commodity in the eyes of potential consumers, that is, the ability of a particular thing or service to satisfy a human need. In other words, the usefulness of the product to the customer, that is what most often focused marketing.

Under a value in exchange refers to a kind of generalized ratio according to which some goods can be exchanged for others. As equivalent to the exchange value of a currency acts as a universal method of determining the average exchange value of the commodity.

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The Product and its properties in modern marketing

In order to be able to be present and to get to potential consumer goods in a modern economy must have five essential characteristics:

- a certain level of quality;

- individually decorated, reflecting its specificity;

- a set of properties inherent only to this product;

- brand name

- a package with specific differences.

Level of quality is decisive for any product, as it is dependent on not only the exchange value of a particular service or thing, but also the success of its promotion in the market.

In order to be successful and to allow your manufacturer to get a steady income, commodity and its properties should differ from the counterparts offered by competitors. In conditions of constant economic growth and increasing supply, the consumer seeks to select the highest quality product with the largest possible number of functions.

In addition, the important characteristics of the product are also such components as the usefulness and rarity. These concepts are fundamental to determine customer value, so the exchange value of even the most useful products will not necessarily reflect the real cost of its production. Often the usefulness of inexpensive, but essential item will be much higher usefulness of a luxury item, having a huge material value.