The component whether it is "ready to use or a raw material" ultimately decides whether it is a consumer good or industrial good.
Step-by-step explanation:
Let us understand the terms:
Consumer goods:
- Satisfy the need of the consumer
- Ready for consumption
- Also called final good
- Eg. Clothing, drinks and food
- Stocked on store shelves
- There are 3 categories: Durable goods, non-durable goods, or consumer services.
Industrial goods:
- At the most it will be raw materials, plants, machinery, etc
- There are two types: production goods and support goods
- Used for industrial and business use
- Based on the demand and consumer need, industries prepare products with the help of raw materials.