Many people have a general mindset that customers and consumers are the same things. But, actually, it’s not. There’s a huge difference between these two. The one who is reading this blog. Yes, you are a consumer or a customer. It varies from situation to situation. Both of these terms might sound similar. But, the difference lies in the situation you are in. It might be the case that both customer vs consumer are the same. Both of these terms are clear from their name. However, to get a detailed understanding of both these topics, refer to this blog as your all-time solution. So, let’s first understand who is a consumer and what are their roles?

Who is a Consumer?

You may be called a consumer if you consume something or use any product for satisfying your own demands. To fall into the category of consumer, it is a must that you don’t resell the product. If the first person grants another person to consume that product or goods, then that another person is also known as a consumer. In a nutshell, the person who is present at the end of the goods or services is termed as a consumer. 

The persons who are a part of the economy are categorized as a consumer. Let me help you with an example, imagine that you have been to a grocery store to buy vegetables for your family, then you will be only known as the customer. But, when you feed your family members then they will be known as the consumer. 

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Types of Consumers

Commercial Consumers

Whenever you need a bulk purchase of the products, then you are under this category. Sometimes, they require the product or resell it for some other purpose. 

Discretionary Spending Consumers

This type of customer buys lots of products without taking into consideration the cost of a product. 

Extroverted Consumers

They are the ones who are the actual buyers. You will find loyal customers from this category only. 

Inferior Goods Consumers

Those consumers who afford to buy the products and services at low costs are known as inferior goods consumers. 

Role of a Consumer

It might be possible that the customer may not use the products or services. But, a consumer will be of great help to you as they consume the product and directly helps you to know about the usefulness of that product. 

One of the key aspects to test your product is the consumer’s behavior. Their behavior determines a lot regarding your business. To receive huge sales and earn a profit, try to get familiar with the consumer’s behavior. 

Consumer behavior continued to attract additional researchers and publication outlets from 1993 through 1996. Both general interest and domain-specific scholarly contributions are discussed, along with limitations and suggested areas for future research[1].

Importance of Consumer

Consumers play a major role in shaping your business. Some of the most important roles of the customers are.

Encourages Demand

Any demand in the market is created due to the consumers. Their demands decide about the product which is to be manufactured. 

Demand Creation for Various Products

Due to the various and diversified tastes of people, goods are manufactured on the basis of their choices.   

Increased demands for Consumer Goods

The demand for any particular product is created due to the demands of these consumers. 

Enhances service diversification

To promote a better standard of living, people buy the products which are beneficial to them and suit their status. Thus, a diverse collection of goods are produced. 

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Who is a Customer?

You will be a customer if you will pay for a particular product and satisfy your demand. There are various chances when the customer is a consumer, and sometimes it’s not. Let’s say, for example, you have kids, and you visit a toy store to buy toys for your kids. Then you will be the customer, and your children will be the consumer. A customer is also popular by the term clients or buyers. In just one line, a customer is someone who pays and buys something for someone else. 

Types of Customers

There are two types of customers, which are as follows.

Trade Customer

The customers who buy a particular good, add some value to it, and resell the product are known as the trade customers. Some examples of trade customers are distributors, wholesalers, and resellers. 

Final Customer

Whenever you buy a product to satisfy your own need, it’s termed the final customer. 

The customers are again subdivided into three parts based upon the satisfaction of the product. If the customer is satisfied with your product and wishes to buy more. 

• Present Customer
• Former Customer
• Potential Customer

Variations of Customers

It is not the boss within the company who decides the success of any company. It’s the customer only who is the real boss. The different types of customers are here on the list. 

Loyal Customers

The meaning is clear with the term only. Loyal customers are those who are completely satisfied with your products or services. 

Discount Customers

These types of customers buy a product only when they find the product at discount or at a low rate. Discount customers are regular ones, but the discount is their weakness. 

Impulsive Customers

These customers are the ones who are difficult to be convinced upon. They buy only those products which seem to be important and advantageous to them at a particular time. 

Need-Based Customers

People who fall into this category are those who don’t buy unnecessary goods or products. While they only buy a particular product when there’s a need for it.

Wandering Customers

These are the types of customers, who usually are unaware of what they are going to buy. These customers are some of the most invaluable customers for your business. 

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Customer Consumer Relationship

• The consumer is the real reason behind the sales of a company. The consumer and customer both are interlinked, and a business is not possible without their contribution. 
• They are essential to establish a perfect relationship between the supply of the product and the demand of the product. 
• According to the different tastes or people, there’s a demand for the production of various goods and services.

Customer VS Consumer

• The customer might be an individual who buys a particular product to satisfy their needs. While a consumer is those who consume that product. 
• The customer might buy and resell a product, but the consumer ought to use that product without reselling it. 
• A consumer might not use the money to use a product, but the customer is supposed to use the money to buy a product. 

Final Thoughts

You will find the summary of this blog very interesting because it relates to your daily life. You must have been to a stationary or a grocery shop every day. But, have you ever thought about whether you are a customer or a consumer? This blog will clear that confusion. Also learn the roles of a consumer as well as the differences and relationships between the customer and the consumer. There are various types of customers and consumers, which you will also get to learn from this article. This article also revolves around the importance of a consumer and other important factors. 

References

[1] Jacoby, J., Johar, G. V., & Morrin, M. (1998). Consumer behavior: A quadrennium. Annual review of psychology, 49(1), 319-344.