Commoditization
Encyclopedia
Commoditization is the process by which goods
that have economic value
and are distinguishable in terms of attributes (uniqueness or brand
) end up becoming simple commodities
in the eyes of the market or consumer
s. It is the movement of a market from differentiated to undifferentiated price competition and from monopolistic
to perfect competition
.
Goods
Goods may refer to;*Good , physical product*Personal property, legal personal chattels...
that have economic value
Value (economics)
An economic value is the worth of a good or service as determined by the market.The economic value of a good or service has puzzled economists since the beginning of the discipline. First, economists tried to estimate the value of a good to an individual alone, and extend that definition to goods...
and are distinguishable in terms of attributes (uniqueness or brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
) end up becoming simple commodities
Commodity
In economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....
in the eyes of the market or consumer
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
s. It is the movement of a market from differentiated to undifferentiated price competition and from monopolistic
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
to perfect competition
Perfect competition
In economic theory, perfect competition describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Because the conditions for perfect competition are strict, there are few if any perfectly competitive markets...
.