Industrial products are those purchased for further processing or for use in conducting a business. Thus, the distinction between a consumer product and an industrial product is based on the purpose for which the product is purchased. If a consumer buys a lawn mower for use around home, the lawn mower is a consumer product. If the same consumer buys the same lawn mower for use in a landscaping business, the lawn mower is an industrial product.
The three groups of industrial products and services include materials and parts, capital items, and supplies and services.
Industrial products refer goods or services purchased for the production of other goods and services or to be used in the operation of the business.
Industrial product allows a good or service used by an organization in producing other gods or services or in carrying out its operations.