Marketing and advertising include many words that can be difficult for common people to understand. Likewise, many people think that the word consumer and customer have a similar meaning, but they have a different meaning from the marketer’s viewpoint, though they sound similar. There are various situations where we can understand that the customer and consumer can be the same person, but these words altogether have a different meaning. So let’s understand in this article what is the things that make the word customer and consumer different from each other.
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 a 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 categorized as a consumer. In simple word, 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 a 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.
Must Read Articles for Commerce Students: 2019
|Cost Accounting vs Financial Accounting||What is Assets and Liabilities|
|What is Trial Balance and Balance Sheet||Fixed Assets and Current Assets|
|What is Fixed Cost and Variable Cost||Balance Sheet and Financial Statement|