Concept And Meaning Of Customers
The person or groups of persons who but goods or services are called customers. In the absence of customers exchange is impossible. Only the sellers cannot complete business activity. Both the sellers and buyers are important for business.
The old concept of business does not give importance to customers. But the modern concept believes that success of business depends on customers. It is said- " Customers are the king for business success." Customers are of different types. They can be classified into categories as institutional customers and non-institutional customers.
1. Concept Of Institutional Customers/Buyers
The business firm, which buy goods for production or resale, are called institutional customers. Governmental and non-governmental organizations, which buy products for office use are also institutional buyers. So, producers, wholesalers, retailers, cooperative organizations, schools, colleges, governmental and non-governmental organizations etc include in institutional buyers. Institutional buyers are also called organizational and industrial customers.
2. Concept Of Non-institutional Customers/Buyers
The customers who buy goods or services for their daily domestic use are called non-institutional buyers. Such customers buy goods or services for ultimate use. They buy daily needs such as foods grains, clothes, books, copies, kitchen utensils and materials, medicines, ornaments, cosmetic etc. for regular use. So, the non-institutional buyers are also called individual or ultimate customers. Generally, ultimate customers buy daily needs from near by retailers. Such customers may or may not know about market situation, goods or services, price etc. But they buy different products to meet their needs.
Non-institutional buyers may be male, female, young, old, child, native, foreigner, etc. Habit, nature, behavior, necessity, thinking style etc. of each customer is different. So, such customers are of different.
