Question
Define the terms customer and consumer and explain them with examples
Answer :
Word Count : 1257
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A customer is a person, group, or organization that purchases or intends to purchase goods and services from a business. The term customer is mainly associated with the buying relationship between an individual and a seller. In retailing, a customer is the person who visits a store, selects products, interacts with sales staff, places an order, or makes a purchase. A customer may buy products for personal use or for someone else. Therefore, the customer is not necessarily the final user of the product. For example, if a father visits a supermarket and purchases a packet of baby food for his child, the father is the customer because he is the person making the purchase, while the child is the consumer because the child uses the product. Similarly, if a company purchases computers from an electronics retailer for its employees, the company is the customer, while the employees who use the computers are the consumers. A consumer, on the other hand, is the person or organization that actually uses, consumes, or derives benefit from a product or service. The consumer is the final user of the product. Consumption does not always involve purchasing the product directly. A person can be a consumer even when another person pays for and purchases the product. For example, when a mother purchases a school bag for her son, the mother is the customer because she buys the bag, while her son is the consumer because he uses it. In another case, when a person buys a birthday cake for a friend, the buyer is the customer and the friend who eats the cake is the consumer. The distinction between customer and consumer is particularly important in Store Operations-I because retail stores have to understand both the person who purchases the product and the person who ultimately uses it. Store operations involve activities such as merchandise planning, product display, inventory management, customer service, billing, sales promotion, store layout, and complaint handling. All these activities are influenced by customer and consumer behaviour. A customer is generally concerned with the buying process. The customer enters a store with a particular requirement, searches for products, compares alternatives, considers price and quality, seeks assistance from sales personnel, and finally purchases the selected product. The customer's decision may be influenced by product availability, price, discounts, store atmosphere, convenience, staff behaviour, brand reputation, and payment facilities. For instance, suppose a customer enters a clothing store to purchase a shirt. The customer may examine different brands, compare prices, check sizes and colours, ask the salesperson for assistance, and finally select one shirt. From the perspective of store operations, the retailer must ensure that the required sizes and designs are available, products are properly displayed, prices are clearly marked, and employees provide appropriate assistance. A consumer focuses more on the actual use and performance of the product. The consumer evaluates whether the product satisfies the intended need. In the case of the shirt,
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