External customers, on the other hand, are the people who are not directly associated with the organization. An external
customer is someone who pays the employer and ultimately facilitates their paycheck. In the modern competitive market, the
scope of external customers is really huge as there is a lot of preference open before them. If the products or services are
unable to satisfy their needs they have the option to shift the business elsewhere.
While using the word customer, the primary thing that comes to our mind is the external customer.
Customers can also be further categorized into intermediate customer and ultimate customer
An intermediate customer is a dealer or trader who purchases goods for re-sale. An intermediate customer can be an
organization or individual who operates as a distributor or dealer between the supplier and the consumer. An intermediate
customer is not a consumer at all.
The ultimate customers on the other hand can be called consumers because they do not re-sale the purchased goods or
products. Therefore it can be said that the person who buys and uses a particular product in its final form is an ultimate
A customer may or may not be a consumer. A customer purchases goods whereas a consumer uses them.
Consumer under section 2(1)(d) of the Consumer Protection Act, 1986, means who pays money for goods or services. In other words, a consumer is a specific person who pays money either to purchase some goods or services of another person, individual or corporate body.
The definition 2(1)(d)(i) does not include a person who obtains such goods for resale or for any commercial
Knowing and understanding customers and their needs is central to any successful business. It is essential to understand
customers to provide them with good service.
The focus of marketing today is the customer. It is very important to study customer behavior for successful marketing.
Customer is an important component for success. In today’s global business world, customers have access to all information
about services and also have access to purchase communication.
Only having superficial knowledge about the customers is not enough to conduct a good business. Nowadays a number of
businesses have developed effective methodologies for gathering data about their customers.
Recent researches have proved that customer satisfaction is one of the few indicators of a business’ future profitability.
Understanding customers requires close contact with the customers to acquire maximum amount of relevant information.
A customer’s experience encompasses every aspect that a company offers- the quality of customer care, product quality,
packaging, advertising, etc.