Difference Between Consumer Goods And Capital Goods

Difference Between Consumer And Capital Goods

The main dissimilarities or difference between consumer goods and capital goods can be pointed out as follows:

1. Introduction

Consumer Goods: Products that are bought by the final consumers to fulfill their daily needs and wants.

Capital Goods: Products that are purchased by producers or manufacturers to produce consumer goods.

2. Also Called

Consumer Goods: They are also called final goods

Capital Goods: They are also called intermediate goods

3. Objectives Of Buying

Consumer Goods: They are bought for personal or family use

Capital Goods: They are bought for further production purpose

4. Demand

Consumer Goods: Demand of these products is higher than the demand of capital goods

Capital Goods: Demand of capital goods is lower than the demand of consumer goods

5. Sort Of Business

Consumer Goods: B2C (Business to customer)

Capital Goods: B2B (Business to business)

    Also Read: 

Difference Between Goods And Services

6. Price

Consumer Goods: Price of goods is lower than the price of capital goods

Capital Goods: Price is higher than the price of consumer goods

7. Examples

Consumer Goods: TV, bread, vegetables, toy, mobile etc. are some examples of consumer goods

Capital Goods: Building, machinery, equipment etc. are some examples of capital goods

Consumer Goods Vs Capital Goods (Comparison Chart)

Basis For Difference	Consumer Goods	Capital Goods
Introduction	Products that fulfill the daily needs of customers	Products that are used to produce consumer goods
Also Called	Final goods	Intermediate goods
Buying Purpose	Personal use	Further production
Demand	High	Less
Sort Of Business	B2C	B2B
Price	Lower	Higher
Examples	Bread, medicine, TV, vegetables etc.	Machinery, equipment, building etc.

I hope this post is helpful to understand the difference between consumer goods and capital goods and to make comparison between them.