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<title>Commoditization</title>

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<span id="openzim-page-title" class="mw-page-title-main"><span class="mw-page-title-main">Commoditization</span></span>

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</style><div role="note" class="hatnote navigation-not-searchable">Not to be confused with <a href="Commodification" title="Commodification">commodification</a>.</div>

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</style><table class="sidebar sidebar-collapse nomobile nowraplinks hlist"><tbody><tr><td class="sidebar-pretitle"><i>Part of a series on</i></td></tr><tr><th class="sidebar-title-with-pretitle" style="background:#ccccff; color:var(--color-base,#202122);"><a href="Economic_anthropology" title="Economic anthropology">Economic</a>, <a href="Applied_anthropology" title="Applied anthropology">applied</a>, and <a href="Anthropology_of_development" title="Anthropology of development">development <br>anthropology</a></th></tr><tr><td class="sidebar-content">

<div class="sidebar-list mw-collapsible"><div class="sidebar-list-title" style="text-align: center;color: var(--color-base)">Basic concepts</div><div class="sidebar-list-content mw-collapsible-content">

<ul><li><a href="Barter" title="Barter">Barter</a></li>

<li><a href="Commodification" title="Commodification">Commodification</a></li>

<li><a href="Cultural_capital" title="Cultural capital">Cultural capital</a></li>

<li><a href="Embeddedness" title="Embeddedness">Embeddedness</a></li>

<li><a href="Social_studies_of_finance" title="Social studies of finance">Finance</a></li>

<li><a href="Gift_economy" title="Gift economy">Gift economy</a></li>

<li><a href="Inalienable_possessions" title="Inalienable possessions">Inalienable possessions</a></li>

<li><a href="Limited_good" title="Limited good">Limited good</a></li>

<li><a href="Reciprocity_(cultural_anthropology)" title="Reciprocity (cultural anthropology)">Reciprocity</a></li>

<li><a href="Redistribution_(cultural_anthropology)" title="Redistribution (cultural anthropology)">Redistribution</a></li>

<li><a href="Anthropological_theories_of_value" title="Anthropological theories of value">Value</a></li>

<li><a href="Wealth#Anthropological_views" title="Wealth">Wealth</a></li>

<li><a href="Commodity_pathway_diversion" title="Commodity pathway diversion">Singularization <span style="font-size: 85%;">(commodity pathway)</span></a></li>

<li><a href="Social_capital" title="Social capital">Social capital</a></li>

<li><a href="Spheres_of_exchange" title="Spheres of exchange">Spheres of exchange</a></li></ul></div></div></td>

</tr><tr><td class="sidebar-content">

<div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;color: var(--color-base)">Provisioning systems</div><div class="sidebar-list-content mw-collapsible-content">

<ul><li><a href="Hunter-gatherer" title="Hunter-gatherer">Hunting-gathering</a></li>

<li><a href="Moral_economy" title="Moral economy">Moral economy</a></li>

<li><a href="Nomadic_pastoralism" title="Nomadic pastoralism">Nomadic pastoralism</a></li>

<li><a href="Pastoralism" title="Pastoralism">Pastoralism</a></li>

<li><a href="Peasant_economics" title="Peasant economics">Peasant economics</a></li>

<li><a href="Shifting_cultivation" title="Shifting cultivation">Shifting cultivation</a></li></ul></div></div></td>

</tr><tr><td class="sidebar-content">

<div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;color: var(--color-base)">Case studies</div><div class="sidebar-list-content mw-collapsible-content">

<dl><dt><i>Prestations</i></dt>

<li><a href="Moka_exchange" title="Moka exchange">Moka exchange</a></li></ul>

<ul><li><a href="Potlatch" title="Potlatch">Potlatch</a></li></ul>

<dl><dt><i>Gifting</i></dt>

<ul><li><a href="Gifting_remittances" title="Gifting remittances">Gifting remittances</a></li></ul>

<ul><li><a href="Organ_gifting" title="Organ gifting">Organ gifting</a></li>

<li><a href="Shell_money" title="Shell money">Shell money</a></li></ul>

<dl><dt><i>Provisioning</i></dt>

<ul><li><a href="Ach%C3%A9_people" class="mw-redirect" title="Aché people">Aché people</a> (hunter-gatherers)</li>

<li><a href="Batek_people" title="Batek people">Batek people</a></li></ul>

<dl><dt><i>Colonialism and development</i></dt>

<ul><li><i><a href="The_Anti-Politics_Machine" title="The Anti-Politics Machine">The Anti-Politics Machine</a></i></li></ul>

<ul><li><i><a href="Europe_and_the_People_Without_History" title="Europe and the People Without History">Europe and the <br>People Without History</a></i></li></ul>

<dl><dt><i>Political economy</i></dt>

<ul><li><a href="Jim_Crow_economy" title="Jim Crow economy">Jim Crow economy</a></li></ul></div></div></td>

</tr><tr><td class="sidebar-content">

<div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;color: var(--color-base)">Related articles</div><div class="sidebar-list-content mw-collapsible-content">

<ul><li><a href="Anthropology_of_development" title="Anthropology of development">Anthropology of development</a></li>

<li><a href="Critique_of_political_economy" title="Critique of political economy">Critique of political economy</a></li>

<li><a href="Culture_of_poverty" title="Culture of poverty">Culture of poverty</a></li>

<li><a href="Formalist%E2%80%93substantivist_debate" title="Formalist–substantivist debate">Formalist–substantivist debate</a></li>

<li><i><a href="The_Great_Transformation_(book)" title="The Great Transformation (book)">The Great Transformation</a></i></li>

<li><a href="Heritage_commodification" title="Heritage commodification">Heritage commodification</a></li>

<li><a href="Nutritional_anthropology" title="Nutritional anthropology">Nutritional anthropology</a></li>

<li><a href="Original_affluent_society" title="Original affluent society">Original affluent society</a></li>

<li><a href="Peasant_economics" title="Peasant economics">Peasant economics</a></li>

<li><a href="Political_economy_in_anthropology" title="Political economy in anthropology">Political economy</a></li>

<li><a href="State_formation" title="State formation">State formation</a></li></ul></div></div></td>

</tr><tr><td class="sidebar-content">

<div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;color: var(--color-base)">Major theorists</div><div class="sidebar-list-content mw-collapsible-content">

<ul><li><a href="Paul_Bohannan" title="Paul Bohannan">Paul Bohannan</a></li>

<li><a href="Alexander_Chayanov" title="Alexander Chayanov">Alexander Chayanov</a></li>

<li><a href="Stanley_Diamond" title="Stanley Diamond">Stanley Diamond</a></li>

<li><a href="Raymond_Firth" title="Raymond Firth">Raymond Firth</a></li>

<li><a href="Maurice_Godelier" title="Maurice Godelier">Maurice Godelier</a></li>

<li><a href="David_Graeber" title="David Graeber">David Graeber</a></li>

<li><a href="Jane_I._Guyer" title="Jane I. Guyer">Jane I. Guyer</a></li>

<li><a href="Keith_Hart_(anthropologist)" title="Keith Hart (anthropologist)">Keith Hart</a></li>

<li><a href="Marvin_Harris" title="Marvin Harris">Marvin Harris</a></li>

<li><a href="Bronis%C5%82aw_Malinowski" title="Bronisław Malinowski">Bronisław Malinowski</a></li>

<li><a href="Marcel_Mauss" title="Marcel Mauss">Marcel Mauss</a></li>

<li><a href="Sidney_Mintz" title="Sidney Mintz">Sidney Mintz</a></li>

<li><a href="Karl_Polanyi" title="Karl Polanyi">Karl Polanyi</a></li>

<li><a href="Marshall_Sahlins" title="Marshall Sahlins">Marshall Sahlins</a></li>

<li><a href="Heinrich_Schurtz" title="Heinrich Schurtz">Heinrich Schurtz</a></li>

<li><a href="Harold_K._Schneider" title="Harold K. Schneider">Harold K. Schneider</a></li>

</tr><tr><td class="sidebar-below">

<a href="Social_anthropology" title="Social anthropology">Social</a> and <a href="Cultural_anthropology" title="Cultural anthropology">cultural anthropology</a></td></tr><tr><td class="sidebar-navbar"><style data-mw-deduplicate="TemplateStyles:r1239400231">

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<p>In <a href="Business" title="Business">business</a> literature, <b>commoditization</b> is defined as the process by which <a href="Good_(economics)" class="mw-redirect" title="Good (economics)">goods</a> that have <a href="Value_(economics)" title="Value (economics)">economic value</a> and are distinguishable in terms of attributes (<a href="Unique_selling_proposition" title="Unique selling proposition">uniqueness</a> or <a href="Brand" title="Brand">brand</a>) end up becoming simple <a href="Commodity" title="Commodity">commodities</a> in the eyes of the market or <a href="Consumer" title="Consumer">consumers</a>. It is the movement of a market from differentiated to undifferentiated price competition and from <a href="Monopolistic_competition" title="Monopolistic competition">monopolistic competition</a> to <a href="Perfect_competition" title="Perfect competition">perfect competition</a>. Hence, the key effect of commoditization is that the <a href="Market_power" title="Market power">pricing power</a> of the manufacturer or brand owner is weakened: when products become more similar from a buyer's point of view, they will tend to buy the cheapest.

</p><p>This is not to be confused with <a href="Commodification" title="Commodification">commodification</a>, which is the concept of objects or services being assigned an exchange value which they did not previously possess by their being produced and presented for sale, as opposed to personal use. One way to summarize the difference is that commoditization is about proprietary things becoming generic, whereas commodification is about nonsaleable things becoming saleable. In social sciences, particularly <a href="Cultural_Anthropology" class="mw-redirect" title="Cultural Anthropology">anthropology</a>, the term is used interchangeably with commodification to describe the process of making commodities out of anything that was not available for trade previously.<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup>

</p><p>Commoditization can be the desired outcome of an entity in the market, or it can be an unintentional outcome that no party actively sought to achieve. (For example, see <a href="Xerox#Trademark" title="Xerox">Xerox#Trademark</a>.)

</p><p>According to <a href="Neoclassical_economics" title="Neoclassical economics">Neo-classical economic theory</a>, consumers can benefit from commoditization, since perfect competition usually leads to lower prices. Branded producers often suffer under commoditization, since the value of the brand (and ability to command price premiums) can be weakened.

</p><p>However, false commoditization can create substantial risk when premier products do have substantial value to offer, particularly in health, safety and security.

</p>

<ul><li><a href="Gal%C3%A1pagos_syndrome" title="Galápagos syndrome">Galápagos syndrome</a></li></ul>

<div class="mw-heading mw-heading2"><h2 id="References">References</h2></div>

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<li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text">Appadurai, Arjun, ed. (1986). <i>The Social Life of Things: Commodities in a Cultural Perspective</i>. Cambridge UP, Cambridge.</span>

</li>

<li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text">Greenwood, D.J. (1977). "'Culture by the Pound: An Anthropological Perspective on Tourism as Cultural Commoditization". In <i>Hosts and Guests</i>, ed. V. L. Smith, pp. 129-139. Philadelphia: University of Pennsylvania Press.</span>

</li>

</ol></div></div>

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</style></div><div role="navigation" class="navbox" aria-labelledby="Commodities_and_commoditization162" style="padding:3px"><table class="nowraplinks hlist mw-collapsible autocollapse navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><div id="Commodities_and_commoditization162" style="font-size:114%;margin:0 4em"><a href="Commodity" title="Commodity">Commodities</a> and </div></th></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="Soft_commodity" title="Soft commodity">Soft commodities</a></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"></div><table class="nowraplinks navbox-subgroup" style="border-spacing:0"><tbody><tr><th scope="row" class="navbox-group" style="width:1%;font-weight:normal;">General</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Barley" title="Barley">Barley</a></li>

<li><a href="Cocoa_bean" title="Cocoa bean">Cocoa</a></li>

<li><a href="Coffee" title="Coffee">Coffee</a></li>

<li><a href="Cotton" title="Cotton">Cotton</a></li>

<li><a href="Cottonseed_oil" title="Cottonseed oil">Cottonseed oil</a></li>

<li><a href="Flaxseed" class="mw-redirect" title="Flaxseed">Flaxseed</a></li>

<li><a href="Maize" title="Maize">Maize</a></li>

<li><a href="Millet" title="Millet">Millet</a></li>

<li><a href="Orange_juice" title="Orange juice">Frozen orange juice</a></li>

<li><a href="Olive_oil" title="Olive oil">Olive oil</a></li>

<li><a href="Peanut_oil" title="Peanut oil">Peanut oil</a></li>

<li><a href="Potato" title="Potato">Potatoes</a></li>

<li><a href="Rapeseed" title="Rapeseed">Rapeseed</a></li>

<li><a href="Natural_rubber" title="Natural rubber">Rubber</a></li>

<li><a href="Soybean" title="Soybean">Soybean</a></li>

<li><a href="Soybean_oil" title="Soybean oil">Soybean oil</a></li>

<li><a href="Sugar" title="Sugar">Sugar</a></li>

<li><a href="Wheat" title="Wheat">Wheat</a></li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%;font-weight:normal;">Animals &<br><a href="Animal_product" title="Animal product">animal products</a></th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Ambergris" title="Ambergris">Ambergris</a></li>

<li><a href="Bristle" title="Bristle">Bristle</a></li>

<li><a href="Butter" title="Butter">Butter</a></li>

<li><a href="Cashmere_wool" title="Cashmere wool">Cashmere</a></li>

<li><a href="Civet_(perfumery)" title="Civet (perfumery)">Civet</a></li>

<li><a href="Feather" title="Feather">Feathers</a></li>

<li><a href="Feeder_cattle" title="Feeder cattle">Feeder cattle</a></li>

<li><a href="Cattle" title="Cattle">Live cattle</a></li>

<li><a href="Goat" title="Goat">Goats</a></li>

<li><a href="Horse" title="Horse">Horses</a></li>

<li><a href="Ivory" title="Ivory">Ivory</a></li>

<li><a href="Pet_industry" title="Pet industry">Pet industry</a></li>

<li><a href="Pork_bellies" class="mw-redirect" title="Pork bellies">Pork bellies</a>

<ul><li><a href="Pork_bellies" class="mw-redirect" title="Pork bellies">Pork belly futures</a></li></ul></li>

<li><a href="Sheep" title="Sheep">Sheep</a></li>

<li><a href="Sponge" title="Sponge">Sponges</a></li>

<li><a href="Tallow" title="Tallow">Tallow</a></li>

<li><a href="Bone" title="Bone">Whalebone</a></li>

</div></td></tr></tbody></table><div></div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Hard commodities</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"></div><table class="nowraplinks navbox-subgroup" style="border-spacing:0"><tbody><tr><th scope="row" class="navbox-group" style="width:6.5em;font-weight:normal;">Energy</th><td class="navbox-list-with-group navbox-list navbox-odd" style="padding:0"><div style="padding:0 0.25em">

<li><a href="Compressed_hydrogen" title="Compressed hydrogen">Compressed hydrogen</a></li>

<li><a href="Petroleum" title="Petroleum">Crude oil</a></li>

<li><a href="Ethanol_fuel" title="Ethanol fuel">Ethanol</a></li>

<li><a href="Heating_oil" title="Heating oil">Heating oil</a></li>

<li><a href="Natural_gas" title="Natural gas">Natural gas</a></li>

<li><a href="Propane" title="Propane">Propane</a></li>

<li><a href="Thorium" title="Thorium">Thorium</a></li>

<li><a href="Uranium" title="Uranium">Uranium</a></li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:6.5em;font-weight:normal;">Industrial metals</th><td class="navbox-list-with-group navbox-list navbox-even" style="padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Aluminium" title="Aluminium">Aluminium</a></li>

<li><a href="Aluminium_alloy" title="Aluminium alloy">Aluminium alloy</a></li>

<li><a href="Cobalt" title="Cobalt">Cobalt</a></li>

<li><a href="Copper" title="Copper">Copper</a></li>

<li><a href="Molybdenum" title="Molybdenum">Molybdenum</a></li>

<li><a href="Nickel" title="Nickel">Nickel</a></li>

<li><a href="Steel" title="Steel">Steel</a></li>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:6.5em;font-weight:normal;">Precious metals</th><td class="navbox-list-with-group navbox-list navbox-odd" style="padding:0"><div style="padding:0 0.25em">

<li><a href="Palladium" title="Palladium">Palladium</a></li>

<li><a href="Platinum" title="Platinum">Platinum</a></li>

<li><a href="Silver" title="Silver">Silver</a></li></ul>

</div></td></tr></tbody></table><div></div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Organizations</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Commodity_market" title="Commodity market">Commodity market</a></li>

<li><a href="Futures_contract" title="Futures contract">Futures contract</a></li>

<li><a href="Futures_exchange" title="Futures exchange">Futures exchange</a></li>

<li><a href="List_of_commodities_exchanges" title="List of commodities exchanges">List of commodities exchanges</a></li>

<li><a href="List_of_futures_exchanges" title="List of futures exchanges">List of futures exchanges</a></li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Laws</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Commodity_Exchange_Act" title="Commodity Exchange Act">Commodity Exchange Act</a></li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Miscellaneous</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Commodification" title="Commodification">Commodification</a></li>

<li><a href="Commodification_of_nature" title="Commodification of nature">Commodification of nature</a></li>

<li><a href="Commodification_of_water" title="Commodification of water">Commodification of water</a></li>

<li><a href="Commodity_status_of_animals" title="Commodity status of animals">Commodity status of animals</a></li>

<li><a href="Fictitious_commodities" title="Fictitious commodities">Fictitious commodities</a></li>

<li><a href="Heritage_commodification" title="Heritage commodification">Heritage commodification</a></li>

<li><a href="Value_(economics)" title="Value (economics)">Economic value</a></li>

<li><a href="Exchange_value" title="Exchange value">Exchange value</a></li>

<li><a href="Price" title="Price">Price</a></li>

<li><a href="Use_value" title="Use value">Use value</a>/<a href="Utility" title="Utility">utility</a></li></ul>

</div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>

<ul><li><a href="List_of_traded_commodities" title="List of traded commodities">List of traded commodities</a></li></ul>

</div></td></tr></tbody></table></div></div><div><div class="zim-footer">

This article is issued from <a class="external text" title="Last edited on 2023-10-27" href="https://en.wikipedia.org/wiki/?title=Commoditization&oldid=1182223048">Wikipedia</a>. The text is available under <a class="external text" href="https://creativecommons.org/licenses/by-sa/4.0/deed.en">Creative Commons Attribution-Share Alike 4.0</a> unless otherwise noted. Additional terms may apply for the media files.

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