Business english

Difference between consumer and customer

Supervised by : Professor Asmae Karama

Done by : -Salah Eddine Moudden G9

-Salma Mkhantar G9
 PLAN
I. Introduction
II. Definition of :
1. Consumer
2. Customer
III. The key differences between customer and consumer
IV. Why consumers are important
V. Conclusion

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I. Introduction

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Consumer vs customer, what are their key
differences, and why do so many people mistake
these two for each other ? When learning about
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economic subjects relating to marketing and selling
strategy, inexperienced people in business might
come across many jargon that mess with their heads.
The two words consumer customer are one typical
example.

On a daily basis, people tend to use customer and consumer

interchangeably since they basically share the same
meaning. However, when considered from an economic
viewpoint, these two deliver distinct messages, and each
one is only appropriate in a certain situation. We are going
to cover their definitions and compare customer vs
consumer to give you a better understanding of this topic.
So let’s dive right into it!
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II. Definition Of :
1. Consumer

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The definition of a consumer could get subjective as
well as tricky sometimes. In any given business, the
one who consumes the service or uses the goods is
said to be a consumer. Note that a customer could be
a consumer at certain times, but not always.
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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 to fulfil their own needs or desires.
Let’s take an example here. Say, you are the head of
the family and you purchase some milk packets
from the retailer. Till the time you buy those
packets, you are a customer. But when that is
consumed by you and your family that is where they
are the consumers.
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 2. Customer “
Again, the definition of a customer is similar to that
of a consumer, but not in its entirety. He is the one
who purchases a product or service followed by a
monetary transaction. Note that a customer is not
exactly a consumer at all times.

This can be better elaborated on with this example.

Say, a mother bought some candies for her kids. In
this case, the mother is the customer, while her kids
are the consumers.

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III. The Key differences between customer
and consumer

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Meaning: While a consumer is the one who consumes
goods or services and is the end-user, a customer is the
one who actually buys it. A consumer can be a

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customer but the reverse is not true.
Target Audience: A consumer could be anybody. Be it
an individual, or a company, maybe a family or a
mass. But a customer is more like a single entity or a
company as a whole.
Selling Purposes: While a consumer does not hold the
right to sell the product, he got to someone else.
However, a customer is eligible to do so.
Reason: While the reason behind a consumer purchase
is consumption, exclusively, on the other hand, the
reason behind a customer purchasing it could either be
consumption or sell it again to someone else.
Transaction: A consumer might or might not have to
hold a monetary transaction for the purpose of getting
the goods. Nonetheless, a consumer must undergo a
transaction if he wishes to take the product or service.
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IV. Why consumers are important

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Encourage Demand- They are the main root for the
demand of any product.  All manufacturers of goods
and services produce various things according to the

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demand in the market. 
Create Demand for Various Products- Different
consumers have several varieties of demand or an
individual consumer can also demand various types
of goods. These encourage the manufacturer to
deliver various products in the market.
Increase Demand for Consumer Goods- It creates
demand for various consumer goods, like long-
lasting, semi-durable and biodegradable goods. 
Enhance Service Diversification – Consumers not
only utilise different types of products but also use
diversified services to support the standard of living.
Such as educational service and health service,
transport and communication service, and banking
and insurance service, etc. This will direct the
development or improvement of the service sector in
the economy. 11
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V. Conclusion
To conclude, it is clear that the person who is a customer is not necessarily a consumer and
vice versa. Now, it is a big question for many marketing executives to whom they focus on a
customer or a consumer?

Enterprises must focus on the two as they should take care of what is demanded of the
product by the consumer as well as they should advertise the product so well that it will
grab the attention of the millions of customers instantly because the buying decision is taken
by the two together or by keeping in view of the other. So, the companies should give equal
importance to both.

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