The term interchangeable goods is used in advertising, marketing, market monitoring, manufacturing practices, and many other areas related to sales and manufacturing. These are goods that can replace each other. In the marketplace, they usually compete with each other.
General information
Interchangeable goods are groups of goods that can substitute for each other if necessary to meet the homogeneous needs of consumers. Most of the products on the market have analogues. Starting from different varieties of margarine and ending with the world's fuel supplies. Directly when the price of one of the types of goods changes upward, the demand for analogs at a lower price increases. There are two types of interchangeable goods: analogs, like margarine from different manufacturers, and interdependent, like cameras and film. In the first case, a change in the price or volume of production of a product by one of the companies will affect the demand for similar products. In the second case, if prices for cameras decrease, then the demand for photographic film will increase accordingly.
Demand for interchangeable goods
The demand for them plays an important role in the formation of the sales market for interchangeable goods. It directly depends on the price. We can say that pricing plays an important role and depends on several external factors. Many durable goods are purchased by consumers on credit. If the loan offers of partner banks become more profitable, for example, interest rates fall, loan repayment terms increase, etc., then the demand for goods will increase.
Another reason that affects the demand for interchangeable goods is the factors of production on which price changes depend. For example, if the owner of a paving slab factory can buy cement at a lower price, accordingly, his costs will decrease, the price of tiles will fall and a more favorable offer will appear on the market.
In times of scarcity, the prices of essential commodities are so high that many are unable to purchase them. Then the state sets fixed prices and a sales limit per person.
The third factor that increases demand is scientific and technological progress. If the manufactured product is more modern and of higher quality than its counterparts, then the demand will increase and, therefore, a more favorable offer for consumers will appear. If the manufacturer uses more modern equipment, then his production costs will decrease and the price for the buyer will become more attractive.
The climatic factor or the environment plays an important role. For example, if a farmer planted a field with potatoes, but it rained and the crop was harvested unusable, then the price of such a product will certainly increase. Tax cuts can also lower the cost of goods and make them more attractive to the buyer.
An example of a fixed price would be a ticket to a sporting event. After all, it is impossible to sell tickets more than the number of seats in the stadium; it is not possible to add seats in a short time.
Manufacturers and marketers are constantly analyzing the market for interchangeable goods in their segment. Marketing research reveals the demand and wishes of consumers for a particular product. This helps the manufacturer to make timely decisions about improving product quality and allocating industrial resources in production.
