Goods can be classified as follows:
Consumer goods are those goods which are bought for personal use. Goods such as food, clothing etc are consumer goods. These goods are mostly for immediate use.
Shopping goods includes relatively high risk products therefore; the buyers do a thorough research about the product quality and availability and visit different places where such products are being sold to compare prices before actually buying the product. These may be homogenous goods i.e. the same product having same packaging, color, company etc which cannot be distinguished are sold by different sellers. Or heterogeneous goods which are close substitutes i.e. they differ in size, shape, quality, company etc.
Capital goods are those goods that are required by others industries for the production their goods. Capital goods require a huge investment. Machineries and plants are the examples of capital goods.
Intermediate goods are those goods which are manufactured by industries to be used in the manufacturing or production of another good that has a need in the market. Aluminum, rubber, plastic etc are the examples of intermediate goods.
Specialty goods are those goods which are not bough very frequently as they require a large amount of investment therefore; the buyers do an extensive research on all the similar products that are available in the market before actually making a decision to buy the product.
Normal goods are those goods which have a direct relationship with the consumer’s income. The consumer’s tends to demand more of the normal goods when they get an increase in their income and their demand decreases with a decrease in their income.
Inferior goods are those goods that have an inverse relationship with the consumer’s income. The demand for inferior goods increases with the decrease in consumer’s income and the demand decreases with the increase in consumer’s income.
These are those goods which are not very expensive and are necessary for life. Demand for such goods remains constant throughout.
Luxury goods are those goods the demand for which increases at a greater percentage with an increase in consumer’s income.
Jeffrey F. Beatty, (2007), Essentials of Business Law, Cengage Learning, Page 1100