commodity-type product

commodity-type product

a good or service which is highly standardized so that the offerings of competing suppliers are perceived by buyers as being virtually identical. Such products offer little scope for PRODUCT DIFFERENTIATION and are mainly sold on price. See PRODUCT LIFE-CYCLE.
References in periodicals archive ?
"It's very difficult for farmers to make a profit when they are growing a commodity-type product, whether corn (for livestock) or hay," says Christopher Markuson, director of the county's Department of Economic Development.
A wide variety of commodity-type product has been coming in from China for years, but more often than not, today's goods made there are of superior quality and are attracting attention from high-end retailers.
"Being an importer of a commodity-type product like a vertical machining center or a knee mill is not in our sweet spot.
Growth has followed the advent of pre-ground coffee; the introduction of brick pack technology in packaging; the conversion of coffee from a simple, commodity-type product to a sophisticated branded concept; and the development of private label and discount coffees.
The company's business model is based on offering commodity-type products. Low insurance penetration and reduced consumer confidence in the local economy strongly limits organic growth as well as the development of new products.
Ironically, at a time of static growth in demand, this has made the market for commodity-type products even more stressful.
Retailers have done a fine job on the store brand side balancing product quality with price so far, especially when it comes to commodity-type products such as distilled white vinegar, apple cider vinegar and vegetable oil.
These "indirect" characteristics can be used to differentiate very similar or commodity-type products and may be fertile ground for differentiation.
"To meet the challenge of globalization, many producers are moving to more unique and customized products as a way to compete with the mass-produced, commodity-type products that are being imported," he says.
This is the result of a strategy adopted by large broiler processors in Brazil to add value to their products in order to increase profit margins and shift away from commodity-type products like whole broilers.
The move shifts Rockwell away from commodity-type products and into more specialized factory automation solutions that combine Rockwell hardware and higher-margined consulting services.
"Companies that manufacture commodity-type products are less likely to be able to push through price increases because of the competition from private label," says Jay McIntosh, Americas director of consumer products for Ernst & Young.