The Difference between Customer and Consumer in Purchasing Decisions Essay

The Difference between Customer and Consumer in Purchasing Decisions Essay

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Perception is the process by which a person selects, organizes, and interprets information. Perceptions are developed through experience. Buyers often receive large amount of information in short period of time and usually perceive and use only a small amount of it. Some information are immediately ignored or quickly forgotten. Process of filtering information is called selective exposure. Portion of information an individual is exposed to is selected to be organized, interpreted and taken into account. Different human’s needs, wants, attributes and beliefs make buyer focus more on different parts of information that are exposed to him. It means choosing the portion of information that supports buyer’s attributes and beliefs (Futrell, 2001). Price perception is the process by which consumers translate prices into meaningful cognitions. Each individual assigns unique meaning to the objective price while translating it to a perceived or psychological price (Black, Bloch & Lichtenstein, 1988). Perceived price is the price encoded by the consumer. Customers don’t always remember actual price. Instead, they encode prices in a way that are meaningful to them (Zeithaml, 1988). Price conscious consumers may not necessarily pay the lowest price available, but they tend to pay the lower price when they analyzing characteristics of more expensive alternatives that cannot be justified. If the price conscious consumer pay higher price for some product, he requires explicit justification of returns in quality for increased kuna outlays (Black, Bloch & Lichtenstein, 1988).
Studies reveal that consumers do not always know or remember actual prices of products. Instead, they encode prices in ways that are meaningful to them. Profession...

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...ual or company that purchases goods or services produced by another individual, company or other entity. He can purchase them for his personal needs, but also for merchandising or resale. There are two types of customers: external and internal. External customer is the customer that is not directly connected to the organization and environment. Society can easily influence on his purchasing decision. Internal customer is the person that is directly connected to the organization. Internal customers are usually stakeholders, employees and shareholders (Blyth, 2008). Customer can be the same as consumer but he doesn’t need to be. Customer is purchasing the product but he doesn’t need to consume it, but he can use it if he buys it for his personal needs and wants. Consumer is an individual who acquires goods and services for his own personal needs (Frain, 1999).

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