Convenience Good

What is a 'Convenience Good'

A consumer item that is widely-available, purchased frequently and with minimal effort. Because a convenience good can be found readily, it does not require the consumer to go through an intensive decision-making process. Examples of convenience goods include newspapers and candy.


Convenience goods are different than specialty goods, such as a car, which are more expensive and often carry a greater opportunity cost to the consumer.

BREAKING DOWN 'Convenience Good'

Convenience goods are often the products of habit or impulse, as they are easily found by consumers and are inexpensive enough for most consumers to purchase. Because the inexpensiveness of a good can be dependent on the income of the consumer, economists often use the cost of a good to the average consumer when determining if a good is inexpensive. If discretionary income falls, consumers may forgo purchasing goods impulsively.

RELATED TERMS
  1. Consumer Goods

    Products that are purchased for consumption by the average consumer. ...
  2. Convenience Check

    Checks linked to a credit card account that can be used for purchases ...
  3. Convenience Fee

    A charge assessed by a payee when a consumer pays with a credit ...
  4. Private Good

    A product that must be purchased in order to be consumed, and ...
  5. Consumer Surplus

    An economic measure of consumer satisfaction, which is calculated ...
  6. Rent To Own

    An arrangement between a consumer and a seller that allows the ...
Related Articles
  1. Budgeting

    Convenience Stores

    These 6 expenses drain your bank account more than you give them credit for
  2. Budgeting

    The Hard Way We Pay For Convenience

    Convenience is a luxury. However, any cost-conscious individual should be aware of these ridiculous ways we pay for convenience and how to avoid them.
  3. Economics

    What are Consumer Goods?

    Products that are purchased for consumption by the average consumer. Clothing, food, automobiles and jewelry are all examples of consumer goods
  4. Professionals

    Marginal Benefit and Marginal Cost

    Marginal Benefit and Marginal Cost. Learn about the Law of Diminishing Marginal Utility in regards to marginal costs and benefits to the consumer.
  5. Personal Finance

    Microeconomics: Assumptions and Utility

    by Marc DavisThe decision-making process of the individual consumer is critically important in the study of microeconomics because consumer spending accounts for about 70% of the economy.Consumers ...
  6. Economics

    Explaining Consumer Discretionary

    Consumer discretionary is a term from economics that refers to the sector of the economy that produces goods and services that are nonessential.
  7. Economics

    What Does Price Level Mean?

    Price level is the average of all current prices for goods and services in an economy.
  8. Investing

    Amazon Monetizes Convenience (AMZN)

    Amazon has tapped into America's convenience culture. The company has struck gold with services that allow for maximum convenience at a low cost.
  9. Mutual Funds & ETFs

    3 Popular Consumer Sector ETFs in 2016 (XLY, XLP)

    Find out which consumer sector exchange-traded funds (ETFs) are the most popular going into 2016 based on the amount of assets under management.
  10. Personal Finance

    Microeconomics: Factors Of Consumer Decision-Making

    by Marc DavisSupply and DemandAlthough economists all agree that the price of a product or service is a major factor in the consumer decision-making process, it's not the only factor, and it ...
RELATED FAQS
  1. How are industrial goods different from consumer goods?

    Understand the difference between industrial goods and consumer goods, and learn the different types of industrial goods ... Read Answer >>
  2. Which economic factors most affect the demand for consumer goods?

    Understand how key economic factors such as inflation, unemployment, interest rates and consumer confidence affect the level ... Read Answer >>
  3. What is the difference between a capital good and a consumer good?

    Learn to differentiate between capital goods and consumer goods, and see why capital goods require savings and investment ... Read Answer >>
  4. How does revolving credit differ from a general line of credit?

    Examine the consumer goods sector, which accounts for nearly one-third of consumer spending, and learn which goods account ... Read Answer >>
  5. What's the difference between the substitution effect and the income effect?

    Learn the difference between the income effect and the substitution effect in terms of spending money. Predict which direction ... Read Answer >>
  6. What's the difference between the substitution effect and price effect?

    Learn how the increase in an item's price affects consumer demand. Explore the differences between the substitution and price ... Read Answer >>
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  3. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  4. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  5. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  6. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
Trading Center