Definition: Consumer is a person who decides on the purchase of a good or a service for personal use, based on personal preferences, beliefs, and needs or the influence of advertising.
What Does Consumer Mean?
What is the definition of consumer? Understanding consumer behavior enables firms to launch products that people need and want, thereby, increasing their sales and profitability. If a firm fails to understand what consumers need or how they will respond to the launch of a new product, most likely it will incur losses.
On the other hand, consumer behavior is extremely complex as it involves the individual mindset of a person, personal preferences and attitudes, and different levels of consumption. Especially, in times of financial crisis, consumers experience a change in their living standard, which has an impact on their preferences and level of spending for consumption.
Let’s look at an example.
Example
In the era of digitization, e-commerce and mobile shopping have greatly increased. Consumers expect seamless delivery of products when shopping online, including fast expedition and free one-day shopping. In addition, a flexible return policy is also important for e-commerce growth.
The growth of big data and the potential of connected devices promise consumers a totally new experience of consumption. Smart phones, smart fridges, smart cities, all integrate advanced information and communication technology (ICT) and the Internet of Things (IoT), seeking to manage consumer preferences and attitudes in an innovative way.
To anticipate the growing consumer demand, companies should address consumer needs. Early adopters offer pioneering energy and safety solutions for smart homes responding to nearly 75% of consumers, who would trust their won and their family’s safety in a smart, connected device. In addition, an estimated 30% of capital expenditures is invested in supply-chain technologies. Small businesses seek to offer consumers innovative fulfillment solutions, including logistics, transportation and order management, to gain competitive advantage.
Summary Definition
Define Consumers: Consumer means an organization or individual that uses a product for its intended use.
