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Consumers

Consumer is a word which is used in many different contexts and as such the meaning may alter slightly depending on the particular topic being discussed. However, a consumer is essentially a customer. An individual or an organisation that use goods or services which are generated within an economy.

When we look at an economic and marketing context we use the term consumer to refer to a person who uses a product or service. For this purpose the consumer is generic entity who has two choices 'to buy or not to buy'. However, the role of marketing within this field is increasingly looking at making this generalised consumer more personal. This is achieved by looking at personalised and permission marketing for example rather than using a broad demographic profile which used to be the favoured trend.

We live in a free market and as such it is generally assumed that the consumer chooses what to buy and what not to buy and as such is the driving force of the economy and dictates the product and services that exist in the marketplace. However, it is really the level of disposable income that the consumer has which decides his spending power and level of consumption of goods. In order to increase his spending power, a consumer may actually choose to spend less at times when he has more income, with the aim of increasing his spending power in the future. Put simply, he may save his money rather than spend it! This may be via fixed rate savings options or may be with higher risk options such as shares purchased on the stock exchange.