Critical thinking exercises

critical thinking exercise 9-2

Consumer or B2B Good?

For each product below, indicate whether it is a consumer good, a B2B (industrial) good, or both. Explain the reasons for your choices.

Item / Type of good / Rationale
1. McDonald’s Big Mac / £ Consumer
£ B2B
£ Both
2. Xerox copy paper / £ Consumer
£ B2B
£ Both
3. 14-pound bag of sugar / £ Consumer
£ B2B
£ Both
4. John Deere front-end loader / £ Consumer
£ B2B
£ Both
5. Hewlett-Packard laser printer / £ Consumer
£ B2B
£ Both
6. Band-Aid strips / £ Consumer
£ B2B
£ Both
7. Designer wedding dress / £ Consumer
£ B2B
£ Both
8. 20-pound box of framing nails / £ Consumer
£ B2B
£ Both
9. Craftsman 48” cut riding lawnmower / £ Consumer
£ B2B
£ Both
10. TurboTax tax preparation software / £ Consumer
£ B2B
£ Both


NOTES ON critical thinking exercise 9-2

Item / Type of good / Rationale
1. McDonald’s Big Mac / T Consumer
£ B2B
£ Both / A McDonald’s Big Mac probably could not be used to create another consumer product.
2. Xerox copy paper / £ Consumer
£ B2B
T Both / An office could use the copy paper to create reports for another customer (B2B good), but it could also be sold to a customer for home use.
3. 14-pound bag of sugar / £ Consumer
£ B2B
T Both / A bag of sugar delivered to a restaurant would be a B2B good because it is used to create baked good for sale. It can also be sold to a customer to be used in their morning coffee.
4. John Deere front-end loader / £ Consumer
T B2B
£ Both / A front-end loader is a specialized piece of equipment used in construction projects. Your average homeowner doesn’t need one.
5. Hewlett-Packard laser printer / £ Consumer
£ B2B
T Both / Again, could be used in an office or in the home of a consumer.
6. Band-Aid strips / £ Consumer
£ B2B
T Both / In a hospital, Band-Aids would be a B2B good, used to create a consumer service (health care). In a buyer’s home, it is a consumer good.
7. Designer wedding dress / T Consumer
£ B2B
£ Both / The only product a designer wedding dress can create is a bride.
8. 20-pound box of framing nails / £ Consumer
T B2B
£ Both / If the question were about a one-pound box of framing nails, it could be a consumer good, used in a home renovation project. However, the size of this product seems to indicate that a commercial contractor will use it.
9. Craftsman 48” cut riding lawnmower / £ Consumer
£ B2B
T Both / The lawnmower could be used by a lawn-care service (B2B) to create a service or by a homeowner on his or her own yard (consumer).
10. TurboTax tax preparation software / T Consumer
£ B2B
£ Both / A tax preparation service would probably use a professional tax preparation software service. TurboTax is a stripped-down tax preparation program aimed at individuals taxpayers.

Chapter 9: Marketing: Product and Price 9.3