Classification of products by degree of CONSUMPTION divides them into three categories. They are non-durable goods, durable goods, and services.
Non-durable goods are also known as soft goods or consumables. These are goods that can be consumed and will not last for a long period of time before being replaced by goods of the same kind. It lasts for a maximum of three (3) years. Examples of non-durable goods are food and clothing.
Durable goods are goods that last for at least three years. These are goods that takes a long time before being replaced. Examples of these durable goods are appliances, vehicles, furniture, jewelry, sporting goods and consumer electronics.
Services are intangible economic goods. Examples of these services are accounting, banking, cleaning, consultancy, education, expertise, insurance, medical treatment, transportation, and any other services that man can offer.
