Consumer VS Customer — Explained with examples
The terms “customer” and “consumer” are often used interchangeably, but they have distinct meanings and connotations in the business world.
Understanding the difference between these two concepts is crucial for designing effective marketing campaigns and improving business strategies.
Let’s explore a few examples to gain a clearer understanding of the disparity between customers and consumers.
- Polio Drops: The government of India serves as the customer in this scenario, as they purchase the polio drops. However, the actual consumers are the children under the age of five who receive the drops. Marketing campaigns aimed at eradicating polio target the decision makers (i.e., parents) to ensure the drops reach the end consumers.
- College Selection: When it comes to choosing a college, the customer might be a bank that provides a loan for tuition fees, while the consumer is the student who will attend the college. In this case, marketing efforts by colleges often target students, highlighting appealing features like sprawling campuses, equal gender ratios, etc., to attract the consumer.
- Diapers: The baby who uses the diapers is the consumer, but the customer who pays for them is typically the parent. Diaper companies focus their marketing towards parents of babies under the age of three, understanding that the parent’s purchasing decision directly impacts the consumer.
- Coffins: The deceased person is the consumer of the coffin, while the family members who pay for it serve as the customers. Sometimes, individuals may pre-plan and choose their own coffins, making them the customer as well as the consumer. However, from a marketing standpoint, the focus is usually on the family members who make the purchasing decision.
- McDonald’s Happy Meals: In this example, children are the consumers, and parents are the customers. McDonald’s effectively targets children through advertising on channels like Pogo and Disney, enticing them with the idea of getting a toy with their burger. This approach not only appeals to the consumers but also leads to additional orders from the accompanying adults.
Understanding the distinction between customers, consumers, and decision-makers is vital for marketers and businesses.
While these examples shed light on the differences between customers, consumers, and decision-makers, it’s essential to acknowledge that exceptions exist in marketing and life.
Nonetheless, grasping these nuances empowers companies and brands to develop more targeted and effective marketing campaigns, ultimately leading to better business outcomes.
I’ve made a detailed video on this topic, if you’re interested, watch the video here, watch now —