Customer vs Consumer: Difference and Comparison

Many words in marketing and advertising are difficult for the average person to grasp. Many individuals believe that the terms Customer and Consumer have the same meaning.

We can realize that a customer and a consumer are the same individuals in a diversity of scenarios, yet these terms have distinct meanings.

Key Takeaways

  1. Customers are individuals or businesses that purchase products or services, while consumers are the end-users who utilize or consume these products or services.
  2. Customers directly engage with businesses, participating in transactions, whereas consumers may not necessarily interact with the business.
  3. Businesses aim to satisfy customer needs and preferences to ensure repeat purchases while considering consumer preferences in product design and functionality.

Customer vs Consumer

The difference between customer and consumer is that A customer is someone who buys products and services from a vendor on an unvarying basis and pays for them to meet their requirements. A consumer is somebody who prefers to buy a thing for personal use and then consumes it.

Customer vs Consumer

Business Quiz

Test your knowledge about topics related to business

1 / 10

_________ deals with appointing people and placing them at the appropriate jobs.

2 / 10

Non-economic activities aim at __________.

3 / 10

Cash flow is:

4 / 10

The Standard of living is the number of goods and services people can buy with the money they have.

5 / 10

Who is the servant of the firm with a share in the profits?

6 / 10

A person who risks both time and money to start and manage a business is called ___________.

7 / 10

A valid definition of a business purpose is to ______.

8 / 10

In case of death or insolvency of a partner the firm is?

9 / 10

When an existing company offers its shares for sale to the existing shareholders, it is known as ___________.

10 / 10

The method of evaluating the efficiency of workers is termed as _________.

Your score is


The customer is the individual who pays the price and purchases a producer‘s or business’s goods or services. The customer isn’t always the consumer.

The buyer may pay the money and purchase the items or useful services, then donate or sell them at a high profit to another person who will use them.

The individual who consumes or utilizes the things or facilities is mentioned as a consumer. The consumer uses the product or service, and the consumer will be the one to know the true quality and nature of the creation or facility. Every end-user in the chain of product purchases or usage is a consumer.  

Comparison Table

Parameters of ComparisonCustomerConsumer
MeaningCustomer buys products or services and may resell them.consumer buys or uses products or services and can not resell them.
Purchase of goodsYesNot necessary
A customer might be a company or an individual who wants to buy it for resale.  
Consumers do not resale their merchandise.
PurposeEverything is bought by the customer for resale or consumption.The consumer purchases everything just for Consumption
Product or service costThe customer is accountable for the product’s price.The consumer must pay to get the product or service.

What is Customer?

A customer is someone who purchases products or services and pays for them. The term customer comes from the phrase “custom,” which means “practice,” and refers to a distinct body that purchases things or facilities from a vendor regularly. It’s also recognized as a customer or a purchaser.

Customers can be sorted into two groups. The following are —

  1. Trade Customers- These consumers buy things to enhance their worth and then resell them for a profit. Manufacturers, distributors, merchants, and other similar businesses are trade consumers since they do not utilize the items they buy.

2. The Final Customers- Final consumers are those that acquire items for personal use. After the products are purchased, no resale or profit is generated.

Aside from these groupings, customers can be classified into the three categories below.

1. The Discount Customers These customers will only buy goods and things if a discount is offered to them.

2. Loyal Customers—These customers are pleased with a brand’s or store’s services and product quality. As a result, individuals can make numerous purchases.

3. The Need-Based Customers- These customers are more likely to buy only the things or commodities that they require.


What is Consumer?

A consumer can be subjective and difficult to define at times. The person who consumes the service or utilizes the items of any particular firm is termed a consumer. A consumer is any entity that does not have the option of reselling the goods or service and using it for their intended purpose.

There are 4 types of consumers:

  • Extrovert: Consumers that belong to this group are the ones that have a strong need for branded goods. They will almost certainly remain with them and seek to become loyal. They have a strong possibility of becoming brand champions if they are presented with high-quality items and services.
  • Inferior Goods: They are those who have a significant financial shortage and are classified as low-income. As a result, people are obligated to acquire just those items that are necessary for their existence.
  • The Commercial: This group of customers will buy goods and products in large quantities regardless of their real needs. This might be utilized for commercial reasons or not.
  • The Discrete: These customers will choose a separate way of purchasing, as the name indicates. Simply said, they will contemplate spending substantial money on a limited number of goods, such as cosmetics, jewellery, or clothing.

Main Differences Between Customer and Consumer

  1. The Customer is the individual who purchases products or services from a seller. A consumer is someone who buys or consumes products or services.
  2. The customer is stated as a buyer or a customer, whereas the consumer is the final user of the goods.
  3. A customer can be an individual, a firm, or a group of firms, whereas a consumer is a single person,  family, or any group.
  4. A customer always pays the price of the goods or services. The consumer does not have to pay the full price of the commodity.
  5. The customer buys the items for resale or to add value, for his personal use, or for someone else. Consumer purchases items just for the aim of consuming.
Difference Between Customer and Consumer

Last Updated : 11 August, 2023

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