The characteristics of speciality products are:
A. Some people travel long distance to buy such products
B. These products have small units of purchase and low prices
C. The demand for these goods is relatively inelastic.
D. The competition for these products is high.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → A and C only
A. Some people travel long distance to buy such products — Correct. Speciality products are consumer goods with special features, for which buyers make special efforts. A buyer of rare artwork or antiques is willing to spend a lot of effort and travel a long distance to get it.
B. These products have small units of purchase and low prices — Incorrect. Small units and low prices describe convenience products, such as soap or toothpaste. Speciality products are usually costly and bought rarely.
C. The demand for these goods is relatively inelastic. — Correct. Inelastic demand means that even if the price rises, the demand does not come down, because the buyer wants that particular product.
D. The competition for these products is high. — Incorrect. Speciality products are sold at a few selected outlets, and buyers want one particular brand, so competition among sellers is limited. High competition is a feature of convenience products.
NCERT (2026-27 Edition): “Classification of Products … 3. Speciality Products: Speciality products are those consumer goods” “which have certain special features because of which people make special efforts in their purchase. These products are such, which have reached a brand loyalty of the highest order, with a significant number of buyers. The buyers are willing to spend a lot of time and efforts on the purchase of such products. For example, if there is a rare collection of artwork or of antiques, some people may be willing to spend a lot of shopping effort and travel long distance to buy such products. In our day-to-day life, we see people going to a particular hair-cutting saloon or restaurant, or a tailor. The demand for these goods is relatively inelastic, i.e., even if the price is increased, the demand does not come down.” |