They are the products or services which consumers buy depending upon their price. There is no quantitative differentiation for commodities across the market. Milk, sugar, oil, grains and cereals, metals, wool and rubber, and natural gas, are all commodities.
Since it is not easy to pursue the consumers to pay more price for the parallel product he can get at a lesser price, the sellers need to put in a lot of effort on color, logo, brand character, and packaging to differentiate the product so it makes a significant impact on the consumers’ mind. Also, the seller needs to keep on adding value to the product.
Examples of commodities − TATA Salt, General Mill’s Pillsbury whole wheat flour, etc.
