Shiva is an MBA student with Roll No. 2205401046. The document defines customers and consumers. Customers buy offerings from sellers via financial transactions, while consumers are end-users who use the products. There are two types of customers - end-customers who buy for personal use, and resellers who buy to sell to others. Customers drive business growth and profits. Consumers help businesses improve products through feedback.

1. Name : Shiva
Roll No. : 2205401046
Course : MBA

2. Definition Of Customer
A customer is the
individual/business/organisation who buys the
offering from the seller via a financial transaction
or monetary exchange.
In simple terms – Customer is the buyer of the
offering.
Example: A person buying a gift for someone
from a gift shop – the person is a customer of the
gift shop.

3. In general, businesses tend to focus on getting more
customers as they help them grow and gain more
profits. There are different ways of classifying
customers based on the different segments of
businesses. But for the sake of simplicity, we can
classify them into two categories:
1. End-Customer – They are the people who buy the
product offered for their own use, in turn becoming
the consumer of the specified product.
2. Reseller- They are the intermediary who buys the
goods for selling it to others and hence just acting
as a customer and not as a consumer of the
purchased product.

4. Role Of Customer
Customers help drive businesses and are their main
focus – it is by selling to the customers that they are
able to sustain themselves and run their operations.
Without customers, there would be no point of
businesses staying open.
Customers help in improving the quality of the
products and services offered by companies and
businesses. This is achieved by surveying the
current customers – generally termed as Customer
Relationship Management (CRM) – in order to
measure and improve upon the satisfaction and
expectations of the customers.

5. Definition Of Consumer
A consumer is an individual who is the end-user of
the product or service offered by a business.
In simple terms – Consumer is the end-user who
consumes the offering.
Example: Take a kid who recently got candy from his
dad. Even though his dad was the customer who
bought the candy, this child is the consumer who
ends up consuming the product.

6. Role Of Consumer
While a customer may or may not consume the
purchased product, service or good, a consumer on
the other hand actually consumes/uses the product.
This makes consumers great for businesses to judge
the actual usefulness and the genuineness of their
products.
Consumer behaviour is a great tool in identifying the
product that is currently in demand and the ones that
have gone obsolete. They are used by businesses to
target their ideal audience easily, in turn helping
them have the maximum impact on the company’s
sales and growth.

7. Difference Between Consumer And
Customer