- Business Terms
- Intercompany vs. Intracompany
- Margin Account vs. Cash Account
- Boss vs. Leader
- Semi-monthly vs. Bi-weekly
- Tactical vs. Strategic
- Part-time vs. Full-time
- Not-for-profit vs. Nonprofit
- Stakeholder vs. Shareholder
- Elastic vs. Inelastic
- Amortization vs. Depreciation
- FIFO vs. LIFO
- Inbound vs. Outbound
- Public vs. Private Sector
- Stipend vs. Salary
- Formal vs. Informal Assessment
- Proceeds vs. Profits
- Co-op vs. Internship
- Transactional vs. Transformational Leadership
- Union vs. Non-union
- Revenue vs. Sales
- Vertical vs. Horizontal Integration
- Gross Sales vs. Net Sales
- Business Casual vs. Business Professional
- Absolute vs. Comparative Advantage
- Salary vs. Wage
- Income vs. Revenue
- Consumer vs. Customer
- Implicit vs. Explicit Costs
- Letter of Interest vs. Cover Letter
- Cover Letter vs. Resume
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Economics, marketing, and business all have their own jargon. In some cases, they overlap, while in others, they’re quite specific. The terms consumer and customer are often used in the vernacular as being interchangeable, but that’s not quite true. There are differences between the two, even if, in most cases, it’s subtle.
A customer is someone who purchases a good or service to fulfill their needs. A consumer, on the other hand, is a person who ultimately consumes a good or service. Therefore, a customer who purchases a good is often the consumer, but not always. And the consumer is not always the one who purchased the product, either.
Key Takeaways:
| Consumer | Customer |
|---|---|
| A consumer is someone who uses or consumes a good. | A customer is someone who purchases a good. |
| It’s possible to be a consumer without being a customer. | It’s also possible to be a customer without being a consumer. |
| Those who are consumers without being customers are most often pets and children, though gift receivers aren’t customers either. | Those who are customers without being consumers are often parents, pet owners, and resellers. |
| There are four different types of consumers: discretionary spending, inferior goods, commercial, extroverted, and discrete. | There are seven types of customers: loyal, discount, wandering, impulsive, need-based, trade, and final. |
What Is a Consumer?
A consumer is someone who consumes a good or service. They are the individual who ultimately uses whatever is purchased. The consumer need not be the person who purchased it, either. For instance, if a customer buys dog food, the dog is the consumer, while the dog’s owner is the customer.
For the purposes of marketing, there are four different types of consumers.
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Discretionary spending customers. This type of consumer acquires a lot of clothing, electronics, and other items that are not essential. They’re so named because they spend whatever discretionary income they have.
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Inferior goods consumers. Typically this type of consumer has a low income and therefore buys entirely based on price. These goods are usually inferior due to the low price tag. This type of consumer usually forgoes luxury items, only consuming essential goods.
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Commercial consumers. A consumer who buys goods in bulk. They may or may not need the good in question and sometimes will attach special requests to their orders.
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Extroverted consumers. This type of consumer prefers brands that stand out. They’ll become loyal consumers once they find a brand that they trust.
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Discrete consumers. This type of consumer has a particular item that they want but explores different avenues for buying it. This means that their pattern of consumption is inconsistent.
What Is a Customer?
A customer is someone who buys goods and services, whether or not they are the one who ultimately uses them. Customers are usually the ones that companies market or advertise to directly as they’re the ones who pay for the item, though that’s not exclusively the case.
A customer that isn’t a consumer may be a parent buying toys, food, or clothing for their children or a pet owner buying toys, food, or other supplies for their pets.
As with consumers, there are several different types of customers.
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Loyal customer. Loyal customers are the ones that brands depend on. They’re the people who continue to purchase the same type and brand of goods repeatedly.
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Discount customers. This type of customer is focused entirely on price. They seek out companies and brands that offer low prices and will often shop around to find the lowest price for a particular item.
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Wandering customers. Customers of this type are inconsistent with their purchases. Sometimes they’re put in the same group as impulse buyers, but they are much less likely to make a purchase. Most of them spend the majority of their time browsing or window shopping, only buying something that really catches their fancy.
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Impulsive customers. These customers are generally considered a bonus for most retailers, as they tend to buy things that they find interesting or useful at the time. They aren’t looking for a particular product they need, nor are they looking for the best price, which makes it hard to cater to them directly.
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Need-based customers. A need-based customer knows what they need and is there to purchase that specific item. They usually don’t need help locating it because they already have the product in mind.
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Trade customers. This type of customer is interested in reselling a product to make a profit. Most of these are going to be retailers or other types of businesses. But there are some people who make a living off reselling goods at a higher price.
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Final customers. As a rule, these types of customers buy a good in order to consume it. That means that they’re very unlikely to return it or resell it.
Consumer vs. Customer FAQ
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Can you be a customer and not a consumer?
Yes, you can be a customer and not a consumer. For instance, if you have children and you buy clothing for them, they’re the ones consuming the goods, not you. The same is true for pets or even gifts you buy for friends and family.
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Can you be a consumer and not a customer?
Yes, you can be a consumer and not a customer. A consumer is someone who uses or consumes a good; it doesn’t matter whether or not you’re the one who purchased it. Children and pets are the most common type of consumers, as they’ll consume food or toys that someone else bought for them.
You can also be a consumer and not a customer if you receive an item as a gift. You’re not the one who bought it, but you will be the one to use it. In addition, if you buy an item with the intention to resell it without using it, then you’re a customer but not the consumer.
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Do you have customers or consumers?
It’s possible to have both customers and consumers. Most businesses have customers, but they can also have consumers, particularly if they sell goods for children or pets. Everyone is a consumer – you consume food, clothing, and electricity – but not everyone is a customer.
- Business Terms
- Intercompany vs. Intracompany
- Margin Account vs. Cash Account
- Boss vs. Leader
- Semi-monthly vs. Bi-weekly
- Tactical vs. Strategic
- Part-time vs. Full-time
- Not-for-profit vs. Nonprofit
- Stakeholder vs. Shareholder
- Elastic vs. Inelastic
- Amortization vs. Depreciation
- FIFO vs. LIFO
- Inbound vs. Outbound
- Public vs. Private Sector
- Stipend vs. Salary
- Formal vs. Informal Assessment
- Proceeds vs. Profits
- Co-op vs. Internship
- Transactional vs. Transformational Leadership
- Union vs. Non-union
- Revenue vs. Sales
- Vertical vs. Horizontal Integration
- Gross Sales vs. Net Sales
- Business Casual vs. Business Professional
- Absolute vs. Comparative Advantage
- Salary vs. Wage
- Income vs. Revenue
- Consumer vs. Customer
- Implicit vs. Explicit Costs
- Letter of Interest vs. Cover Letter
- Cover Letter vs. Resume

