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Home→The Westburn Dictionary of Marketing→I→inferior goods

inferior goods

Definition:
A PRODUCT for which demand falls as INCOME rises. Normally it would be expected that a rise in income would lead to a rise in the amount of a good being consumed, an inferior good is an exception. An inferior good is one which is a cheap but inferior substitute for some other product, and when incomes rise CONSUMERS can afford to buy the superior product and so demand for the inferior one drops. Examples of this type of product could be: public transport with a switch to private cars, margarine for butter, lumpfish roe for caviar, instant coffee for ground coffee.

Cross-References:
[income] [consumer] [product]

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© Westburn Publishers Ltd 2002, The Westburn Dictionary of Marketing edited by Michael J Baker, ISBN 978-0-946433-01-8. www.themarketingdictionary.com. Entry: [Margaret D. Potts and Michael J. Baker], [1998].