Who is a Customer?
A customer is a person who buys goods and services regularly from the seller and pays for it to satisfy their need. Many times a customer buys a product is also the consumer, but sometimes it’s not. For example, when parents purchase a product for their children, the parent is the customer, and the children are the consumer. They can also be known as client or buyers.
Customers are divided into two categories:
- Trade Customer- These are customers who buy the product, add value and resell it. Like reseller, wholesaler, and distributor, etc.,
- Final Customer– These are the customers who buy the product for their own need or desire.
Further, according to an analysis of the product satisfaction and relationship with the customers, the customers are divided into three kinds-
- Present Customer
- Former Customer
- Potential Customer
Who is a Consumer?
A consumer is someone who purchases the product for his/her own need and consumes it. A consumer cannot resell the good or service but can consume it to earn his/her livelihood and self-employment. Any person, other than the buyer who buys the product or services, consumes the product by taking his/her permission is categorised as a consumer. In simple words, the end user of the goods or services is termed as a consumer.
Given below in a tabular column are the differences between Customer and Consumer.
|Meaning||A customer is who purchases the good and services||The end user of the product or services is consumer|
|Resell||A wholesaler or distributor can purchase the product and resell it||No|
|Motive||Reselling or consumption||Self-consumption|
|Cost of product or services||Is paid by the customer||Maybe not paid by the consumer|
|Target||Individual or Company||Individual, family or group|
The above mentioned is the concept, that is elucidated in detail about ‘Difference between Customer and Consumer’ for the Commerce students. To know more, stay tuned to BYJU’S.