1. Convenience goods:

There are products in our lives which we simply cannot do without. This is not in regards to products we love like our phones or our favourite pair of shoes, but more in regards to products which are staples and essential to daily living. These products are classified as convenience goods, items which are widely available and regularly bought with very little effort. As they are often purchased, customers should not need to go through a rigorous decision-making process. Demand transfer is also very common with convenience goods, where customers will select an alternative brand if their choice brand is not available.

Convenience goods are usually inexpensive and have a low opportunity cost for customers, but this also means a higher sensitivity to price. In this case, the main objective for retailers is to balance out price and demand, ensuring that incremental price increases don’t have a negative effect on quantities of goods sold. As a result, to make maximum profit retailers need to ensure they sell large volumes of convenience goods at a fast pace. Examples of convenience goods include food, newspapers, cleaning products, and personal hygiene products.

2. Impulse goods:

“Two-thirds of the entire economy is impulse buying.” - Paco Underhill, author of the book “Why We Buy: The