Identical product: concept and examples

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:40

Today the market of goods and services represents a huge range of all kinds of products. Small and large businesses produce consumer goods that people use in everyday life. In the economic sphere, it is customary to distinguish between an identical product and a homogeneous one. These concepts are necessary for the formation of the market price.

Basic theory

Identical goods are services or goods of general consumption that have the same characteristics that are characteristic of two or more types. Made by the same manufacturer and in the same city. This does not take into account minor differences in outer wrapping or appearance.

Similar goods are commodities or services that have similar characteristics and can be used interchangeably.

These two concepts are considered only for consumer goods. These are the goods that are sold to the final consumer for his personal use. With their help, the buyer satisfies his material and cultural needs.

Let's consider one interestingexample. A raisin bun made by a local bakery and a raisin bun but coated with powdered sugar from the same factory will be considered identical. But a bun with raisins from a local manufacturer and exactly the same product from a manufacturer from another city will already be called homogeneous.

What are the concepts of identity and homogeneity used for?

It is difficult for a new firm entering the market to form a pricing policy. In theory, the price of a product in the market is formed by the interaction of supply and demand. When the buyer is satisfied with the amount, it may be too small for the seller, and vice versa, too high a producer price may repel the consumer.

Over time, the seller and the buyer find a common ground. But a new company that has just entered the market is not aware of this. And in order to set reasonable prices for your product, you need to study products similar to it. In this case, we are talking about homogeneity.

For example, a company produces cakes. Comparing the range of competitors, you can set the price lower or higher than others. Or leave at the same level.

Black Swan

Consider the example of a company entering the market with an identical product. Here we will talk about one company "K", which has been producing cakes for many years in a row. She has a good reputation, delicious products, and the most popular is the Black Swan cake with chocolate and white icing.

The company, in order to expand and form the assortment, decided to change the Black Swan chocolate cake and add caramel icing to it, calling the product "Sweet Passion". In this case, the product will be identical, and the price will be formed based on the first cake.

Franchising

An identical product must be produced by the same manufacturer. Consider the example of franchising. There is a company "P", which makes high-quality and tasty ice cream. But she cooperates only with wholesale intermediaries, not selling products directly to the final consumer. One businessman, acting on behalf of the company "R", delivered several refrigerators with ice cream in his city and set the price for it at 50 rubles per hundred grams.

Another entrepreneur came and also decided to sell ice cream in the same city from the same company. In this case, these entrepreneurs will trade in identical goods. The second businessman will set his own price, focusing on the one that the first one has already set.

Features of identical and homogeneous product groups

Homogeneous and identical items are very common among consumer goods. This is almost the entire range in our stores and supermarkets.

Look at the shelves. Highly carbonated and medium carbonated water "Kuyalnik" from one manufacturer is an identical product. But the highly carbonated "Kuban" and "Kuyalnik" - this is alreadyhomogeneous.

Alpen Gold milk and milk chocolate with nuts from the same Stollwerck AG plant is an identical group, while Alpen Gold and Alyonushka are homogeneous.

We gave an example of assortment formation. It can be created both within the same firm with interchangeable identical products, and by retailers with interchangeable similar products.

Distinguishing Features

We give the characteristics of an identical group:

• have the same functions;
• created using the same technology;
• are of high quality;
• used in everyday life;
• have one country of origin and one manufacturer.

Pay attention to the last point. There are cases when there is only one manufacturer, but its representative office is located in another country, and the goods were released there. Then two similar items issued in different states will already be considered homogeneous.

Identical goods are recognized only by those that were created by one enterprise in one country.

Characteristics of a homogeneous category:

• composition may be the same or with similar substitutes;
• the quality of goods is not inferior to each other;
• manufactured in one country;
• manufacturers have an equally good reputation in the market;
• are considered interchangeable for the consumer.

Let's say a person in a supermarket chooses a shampoo. It's on the shelfseveral bottles, all from different manufacturers, but have a good reputation and a recognizable trademark. From the point of view of the buyer, goods of similar quality are practically no different, and then the buyer will make his choice based on factors such as price, smell, color, etc.

Formation of concepts of identical and homogeneous goods at customs

When crossing the border with popular goods, you need to fill out a declaration, which indicates the quantity and price of products. Let's consider how the concepts of identical and homogeneous goods are formed during customs clearance.

The same cotton fabric of the same color, of the same manufacturer, is imported into the territory of the Russian Federation by two carriers. One entered into an agreement with the manufacturer on constant supplies at a wholesale price. The second is a one-time contract at a completely different price. In this case, the final cost must be adjusted for differences in commercial sales levels, the fabric will be considered identical.

One more example. Two batches of dresses are imported to customs. The outfits have a common resemblance, the same fabric and style. Differences are in color and size. One batch brought from a well-known fashion designer with a worldwide reputation. The second is from China. Thus, popular products will be considered homogeneous and their price category will be different.

Let's consider a situation when two cars of the same brand with the same characteristics, equipment, only of a different color are imported into the country. If the color is notaffect the price, then the cars are recognized as identical. If a unique paint, airbrush, art-toning is applied, and this makes the price higher, then these are already homogeneous objects.