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Answer -
The products that are used as inputs in the production of other goods are known as industrial products. These goods are used as raw materials for producing finished goods, on the other hand consumer products are those products that customers utilise for consumption. The points of distinction between industrial and consumer products are as follows:
| Basis of Comparison | Industrial Products | Consumer Products |
| Number of Customers | Customer number is limited. For an instance, oil producing seeds are not purchased by many. | Higher number of customers for the end product. For an instance, the oils produced from seed have many customers. |
| Channel of Distribution | Shorter channels of distribution are required for such products. | These products require both short and long distribution channels (which depends on the type of product) before reaching the end user. |
| Location | It is concentrated in areas where there are industries which require such products. | These products are easily available through local retailers. |
| Demand | Industrial products demand is based on consumer product demand. | Consumer products set the requirement for the industrial products |
| Role of Technical Features in Decision Making | Important role of technical features | Technical features do not have a role in decision making as consumer products do not have technical complexity. |