Three categories of consumers have been identified in the context of the modern business environment.
Firstly the producer- Consumer is one who manages to make enough money on the products he produces and sells, enabling him to buy anything he wishes to use at any price.
Secondly the sole consumer who is also known as consumer. Consumer who is mainly represented by the salaried classes with limited resources available for consumer goods and services. Class of consumers also include a very large segment of non literate consumers, who are ignorant or frustrated by their inability to get even essential services in time for survival.
Thirdly the rural consumer who is completely unaware of the happenings around him. He tries to survive with whatever he can produce or buy. He is often unable even to afford the basic necessities of life for his family.
Importance of Consumer : Consumer is the key factor in influencing the market activities. Market activities revolve around the consumer as an individual or as a member of a group in a society. Consumers spend crores of rupees every day to meet their requirements. Seller receives income and they in turn buy goods from the producers. Therefore the economic activities are continued due to the consumers demand for goods and services. Consumers buy goods from retail stores. The retail stores buy supplies from wholesalers. The wholesalers use this money to get supplies from producers and processors. Consumers also pay taxes to the government. The surplus income of the consumers is deposited in the banks as savings. Thus the consumers play some important roles as
Earner of money
Spender of money
Saver of money
Investor of money and tax payer
For meeting his expenditures for the above purpose the consumer receives money or income as wages, rents, interests, profits and social security. Payment like pension etc. thus the economy revolved round the consumer.
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