Business is done for profit only, and with this concept, there is no other objective to establish an organization to produce products and services.
This desired profit is derived from the buyers and customers who pay to enjoy the product or service.
Big or small organizations constantly work on strategies to gain a higher number of potential customers or buyers.
Key Takeaways
- Customers are individuals or businesses that purchase goods or services, while buyers are the specific people responsible for selecting and purchasing products on behalf of an organization.
- Customers can be end users or intermediaries, while buyers work within a purchasing department.
- Customer relationships focus on satisfaction and loyalty, whereas buyer relationships emphasize negotiation and vendor management.
Customer vs Buyer
The difference between customer and buyer is that customers are those people who purchase goods and services for their personal utilization and not to make a profit from it. On the other hand, buyers buy goods in larger quantities and sell them to different shops and people. Buyers purchase things to make a profit for themselves.
A customer is a person who purchases certain goods from shops in specific quantities for his private utilization. The seller has to deal with a customer to satisfy him with services.
The organization depends on the customers to drive the required revenue and make a profit. It is impossible to establish and run a business without having customers.
A buyer also purchases goods from the shop or organization, but in larger quantities to sell them in other shops.
Buyers are people who buy particular things to make a profit out of them by selling them individually.
Buyers are advantageous for businesses because they promote the product without charging a single penny.
Comparison Table
| Parameters Of Comparison | Customer | Buyer |
|---|---|---|
| Types | Customers are divided into five divisions that include Wandering customers, Loyal customers, Impulse customers, Discount and Need-based customers. | Buyers are divided into three divisions that include Spendthrifts buyers, Average Spenders, and Frugalist buyers. |
| Objective | The main objective of customers to buy certain goods is either self-consumption or to gift someone. | The main objective of buyers to buy certain goods is to sell them to people with additional charges. |
| Quantities | The quantity of a particular good bought by a customer is compatibly limited. | The quantity of a particular good bought by a buyer is higher compared to the customer. |
| Relationship | The relationship or connection between a company and a customer is either informal or none. | The relationship or connection between a company and a buyer is official because they have specific deals. |
| Focus | The primary focus of customers is the quality of the goods and services. | The primary focus of a buyer is the quantity and price of the goods and services. |
What is Customer?
Customers are the people who purchase things for their personal use. They are one of the essential components of a business.
Customers buy stuff according to their requirements or transfer it as a gift for their loved ones.
Customers are divided into five types: Loyal customers, Wandering customers, Impulse customers, Need-based customers, and Discount customers.
Loyal customers are at the top of the mind for any business because they value the product. Hence, Loyal customers become a significant segment of the organization.
Wandering customers are those who don’t have a particular desire or need for a specific product but they are only captivated by the location. Such customers are essential but bear no potential.
Impulse customers are one of the most beneficial types of customers because they don’t have the need. Instead, they focus on the quality and availability of the product. A strategy can lure thousand of impulse customers.
Need-based customers, as the name suggests, buys goods or services due to their need.
These customers are challenged to upsell because they purchase only the required product and leave the shop.
Discount customers are like saving for an organization. They wait for specific seasons and definitely make the purchase. Such customers need to be in touch constantly.
In short, it might be complicated to drive a large number of a customer, but with the proper attention and planning, any organization or company can get a crowd of customers.
What is Buyer?
All kind of people who buys goods and services are called buyers. Still, if a person needs to define a buyer, he can describe them to be the people who intend to purchase products but not necessarily purchase them.
They are the people who buy things in larger quantities and then sell them to people at a little high price to make some profit.
Buyers are categorized into three categories that are Frugalist, Spendthrifts, and Average Spenders.
Frugalist buyers are one of the less important for a business owner or company because these people tend to save their money.
Frugalist buyers are very self-controlled and will think about it numerous times before buying anything. To attract these types of buyers, a company needs completely adverse planning.
Spendthrifts are the opposite of Frugalist buyers since they don’t have self-control and spend money without hesitating.
Such buyers even borrow money to make the purchase, and they are very lucrative for an organization.
To lure Spendthrifts, the advertisement should contain visual content appealing emotional aspects of the buyers.
The average spender is the most suitable type of buyer, and they only spend money on things that are appropriate.
They act accordingly to their budget and their requirements. Quantitative analytics must be included in the advertisement to attract an average spender.
Main Differences Between Customer and Buyer
- The customer is considered to be the end-user of the product compared to the buyer. On the other hand, every type of person who purchases or intends to purchase a thing is known as a buyer.
- Customers are divided into five types to understand the proper structure. On the other hand, buyers are divided into three divisions only.
- Customers do not buy various models of the same product at once. On the other hand, a buyer can buy a large quantity of a product.
- The relationship between a company and its customer is not formal. On the other hand, a company forms an official relationship or partnership with buyers.
- When a customer buys something from a store, he aims for the best quality at a lower price. On the other hand, buyers seek for larger quantities at a lower price.
- https://elibrary.ru/item.asp?id=2577698
- https://journals.sagepub.com/doi/abs/10.1177/002224298705100202
Last Updated : 27 July, 2023
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
