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Two of the largest private consumer goods companies are Mars and SC Johnson. Based on consumer buying patterns, marketers group consumer goods into four categories - convenience, shopping, specialty, and unsought goods. Convenience goods are those that are regularly consumed and readily available for purchase, such as milk and tobacco products. Shopping goods, such as furniture, require more thought and planning and are more expensive and durable than convenience goods.

Specialty consumer goods, like fine jewelry, are often considered luxurious and the purchase of these is reserved for an elite class of shoppers with the financial means to conduct the purchase. Finally, unsought consumer goods are readily available but are purchased by a few members of the available market.

Capital goods, such as buildings, machinery, equipment, vehicles, and tools, are physical assets that a company uses in the production process to manufacture products and services that consumers will later use. Capital goods are not finished goods, instead, they are used to make finished goods. Consumer goods are those used by consumers and have no future productive use. A point to note is that the same physical good could be either a consumer or capital good, depending on how the good is used.

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From an economic standpoint, consumer goods can be classified as durable useful for longer than 3 years , nondurable useful for less than 3 years , or pure services consumed instantaneously as they are produced.

For marketing purposes, consumer goods can be grouped into different categories based on consumer behavior, how consumers shop for them, and how frequently consumers shop for them.

What Are the Types of Consumer Goods? This is a common, secure way for individuals to store their cash. Furthermore, it allows them the ability to earn interest on their money. Most savings accounts offer rates based on the fed funds rate. Checking and savings accounts also come with a debit card to allow for ease of withdrawal of funds and payment for goods and services.

Retail banks are also an important source of credit for individuals. They offer consumers credit to purchase large-scale items such as homes and cars. This extension of credit can take the form of mortgages, auto loans, or credit cards. This extension of credit is an important facet of the economy as it provides liquidity to the everyday consumer, which helps the economy grow. One of the biggest trends in retail banking today is the shift to mobile and online banking.

Specifically, banks are adding additional tools and features, such as the ability to put temporary holds on cards, view recurring charges, or scanning a fingerprint to log into an account, in order to retain their existing customers and attract new customers. A retail bank stores the cash deposits of its retail clients. It then uses these deposits to make loans to other clients.

This is known as the reserve requirement and is seen as a safety and liquidity measure. This means that the remainder of the deposits is allowed to be loaned out. The banks charge interest rates on these loans at a higher rate than they pay on customer deposits, which is how banks earn income. Retail banks come in a variety of types and sizes, from local community banks, which are small, locally run banks to the retail banking services of large, global corporate banks such as JPMorgan Chase and Citibank.

As of March 31, , the top five largest U. All of these banks offer retail banking services, which is a large portion of their revenues. Credit unions are another type of retail bank that works as a non-profit cooperative where members pool their assets to be able to provide loans and other financial services to other members.

Credit unions typically provide better interest rates for their members because they are not corporate entities seeking profits and they do not have to pay corporate taxes on any earnings. Banks are adding to their product offerings to provide a greater range of services for their retail clients. In addition to basic retail banking accounts and customer service from local branch financial representatives, banks are also adding teams of financial advisors with broadened product offerings, with investment services such as wealth management, brokerage accounts, private banking , and retirement planning.

In the 21st century, a movement toward Internet banking has also broadly expanded the offerings for retail banking customers. Several banks now provide online services to customers purely through the Internet and mobile applications, limiting the number of times a customer needs to go to a local branch to do business.

In addition to traditional banks offering online services, many new fintech companies have blossomed, offering similar services with more ease, and often times at better prices, as they don't incur the expense of needing traditional brick and mortar bank branches. Examples of these banks include N26, Monzo, and Chime. The percentage of respondents who said they use mobile banking, according to Business Insider Intelligence's Mobile Banking Competitive Edge Study in While retail banking services are provided to individuals in the general public, corporate banking services are only provided to small or large companies and corporate bodies.

The scope of the products and services offered is also different: retail banking is customer-oriented and corporate banking is business-oriented. The financial worth of transactions is comparably higher in corporate banking than in retail banking. The source of profit is also different: the difference between the margin of interest of borrowers and lenders is the main source of profit in retail banking, while corporate banking's source of profit is the interest and fees charged on the services provided.

Corporate banks provide businesses with the following services:. Some corporate banks also have investment banking arms that offer related services to their corporate clients, such as asset management and securities underwriters. Retail banking is intended to help consumers manage their money by giving them access to basic banking services, a source of credit, and financial advice. The general public can access a variety of services through a retail bank, including checking and savings accounts, mortgages, credit cards, foreign currency and remittance services, and automobile financing.

The role of retail banking is to help individual consumers manage their money, gain access to credit, and deposit their money in a secure way. Retail banks offer checking and savings accounts, mortgages, personal loans, credit cards, and certificates of deposit CDs. Bank and Bank of America are examples of retail banks.