The Definition of a Consumer

The Definition of a Consumer

The term consumer is a popular term in our daily lives. Even though you are not a businessperson, you surely have heard this term many times before. Why? Because daily, people like you and millions of other people perform consumption activity. Therefore, you take the role of a consumer every now and then. Moreover, what is the actual definition of a consumer? What is the difference (or a lack of difference) between a consumer and a consumer? Here is the complete explanation.

Understanding the definition of a consumer

In business, or more specifically, in a product line, consumers are the final link of the chain of buying and selling activities. Therefore, the definition of a customer is a person who uses the functions of a product or service.

Philip Kotler, a senior professor and marketing consultant from the United States, provided a more thorough definition of a consumer. Kotler defined a consumer as a certain person or party who pays a fee for a product or service to fulfill his or her needs.

In other words, the definition of a customer is not far off from the consumption activity itself. This gets more evident in situations where the consumption activity involves purchasing products or services. We need to emphasize as well that the term consumer can refer to individuals or groups of people.

Difference between a consumer and a customer

After understanding the definition of a consumer, some of you may think if the definition also refers to the definition of a customer as well. Shortly speaking, the answer is no. The term consumer and customer has significant differences.

The term customer refers to a person who buys and consumes certain products and services consistently from one brand to another. From this definition, you can see the difference between a customer and the previous explanation.

If the term consumer means a person who commonly purchases or consumes something, the customer only buys from the same brand. Therefore, you can be a consumer, but it does not mean you are automatically a customer as long as you do not stick to a certain brand.

This is the reason why many people said that the purpose of a long-term business is to find loyal customers who will always buy its products. With this in mind, the business can sustain its operational capabilities for a longer time.

Read Also: Millennials Consumer Behavior

Types of consumers

The term consumer can be used to mention certain kinds of consumers. Understanding the broader definition of a consumer makes it easier for you to understand certain types of consumers below.

1. Direct consumers

Direct consumers are people who consume their own products. This type is a type of early consumers, where people produce their own products that they need for their daily lives. Although their numbers are not high anymore, their presence persists in this modern era.

2. Consumers by exchanging products

This kind of customer engages in an activity known as bartering. This can happen in situations when a certain party is unable to produce their own products with the necessary resources. As a result, consumption happens by bartering products or services that have the same value.

After the invention of money currency, bartering activity is succeeded with the monetary system, where all purchases are using money as a medium of exchange.

3. Modern consumers

The last type of consumer is the type who are seen because of the monetary system itself. This type of consumers no longer rely on independent production processes for primary needs fulfillment. Modern consumers fully depend on the market to earn products and services that they need every day. These types of consumers mark the reality that consumers can go through changes from time to time. In other words, you need new ways to reach the newer market of consumers. The same thing happens in AdIns as well, which is dedicating to reach the millennials’ consumer market and all of its novelties. Along with AdIns, you can earn the new capability to have more promising business prospects in the future.

Author :

Ad-Ins

    Published date :

    13 April 2021