Customers are the reason that businesses exist!
Customer vesus Consumer
Customer is the person who purchases goods or services from a business
Example: Mary buys a pair of Nike shoes. In this case, Mary is the customer and Nike is a business (or seller).
Consumer is a person or group who uses a product or service.
Example: Ann had a McDonald's hamburger for lunch. In this case, Ann is the consumer because she ate (consumed) the hamburger (product) for lunch.
Note: A customer may be a consumer, but not all consumers are customers. In other words, the person consuming a product or service is not neccessarily the one who purchase it.
Example: Ann bought a McDonald's Happy Meal for lunch and shared it with her friend Chloe. In this case, Ann is the customer since she paid for the meal and ate part of it for lunch. Meanwhile, Chloe is the consumer since she ate the meal but did not pay for it.
Customer needs vesus customer expectations
Customer need is something that the customer requires because it is essential or extremely important to them rather than just desireable.
Example: There is a sudden rain, so James needs to buy an umbrella. In this case, there is a strong customer need for an umbrella in order to avoid getting wet.
Customer expectation is the value that customers believe they will gain from purchasing a particular good or service. This term refers more to what customer desires to have when buying that good or service.
Example: Some customers prefer to purchase products grown, produced or made in Australia. Others prefer to buy items from businesses that are operated in an ethical, socially responsible amd environmentally aware.
Key takeaways for business (Application)
Consumer Power: Consumers are increasingly putting pressure on businesses by demanding environmentally-friendly, clean, and safe products. Consumer groups are founded to mount publicity campaigns aimed at embarrasing businesses that lack ethical and responsible actions.
Unmet customer needs pose potential uncertainty for the profitability and ongoing success of a business. Consumers nowadays have been better educated and informed. They are more health concious and prefer to buy from ethical brands.
Businesses should adopt the philosophies: 'The customer comes first', 'the customer is always right' and constantly develop a good customer relationship (CRM: Customer Relationship Management).
Businesses need to recognise and assess changes in customer tastes to be able to constantly satisfy customers' needs.
Example: McDonald's eco-friendly packaging
To show initiatives in protecting the environment, since 2018, the giant fast-food brand has been working towards all customer packaging being made from renewable, reclaimed or certified materials (excludes pre-packaged goods).
For more information, please view this website: https://mcdonalds.com.au/our-impact/our-planet/reducing-plastic-addressing-litter
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