Difference between Commodity and Product
Although, commodity and product are taken as synonymous terms, yet there is a considerable difference between the two. The former is a thing which is offered in the market at almost the same price by the seller and cannot be differentiated from others while latter is offered at different prices and can be differentiated according to their value.
Commodities are mostly used as raw material to make further products. For instance, leather can be used to make further products like shoes, jackets or wallets. However, the commodities can also be used as a final product e.g. sugar. In contrast, products can be distinguished because of their distinct features and value addition.
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Commodity
It can be defined as an undifferentiated product which is available in a generic form. It is a product which cannot be distinguished or separated. The most common examples of commodity may include copper, wheat, sugar, coffee, cotton and potatoes. Mostly, the commodities are used as raw materials. For example, copper can be used to manufacture certain products like stereo systems which can later be differentiated through branding. However, it cannot be differentiated until or unless it is used to form other products. Besides, you must know that the price charged for a specific commodity remains almost equal around the world because of its generic nature. However, there can be slight differences in the price of a commodity because of its quality or shape.
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Product
It can be referred to a thing which is offered in the market at a specific price and provides utility to the consumer. Moreover, it can easily be differentiated from other commodities which are available to the consumers. The commodities become products if they are branded or added value to. For example, coffee beans are just a commodity which is available at almost the same price in the markets. However, when it is used to form different beverages by famous companies like Starbucks, Dunkin Donuts or Starbucks, it becomes a product.
Branding is one of the most profound ways to create distinctive products. In the last few decades, branding has become a very common in apparel industry before which all types of clothes were used to be sold at the same prices all over the world. But, now branded clothes are very expensive as compared to non-branded ones.
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