What distinguishes a customer from a consumer?

The distinction between a customer and a consumer primarily lies in the role each plays in the purchasing process. A customer is defined as someone who buys a product or service, but they may not be the end user of that product. This means a customer could purchase items for someone else or for resale, which can often be the case in B2B transactions where an organization (the customer) procures goods or services for its employees or clients (the consumers).

This understanding underscores the importance of recognizing the different roles individuals or entities can play in the market. In many scenarios, the customer holds the purchasing power and makes decisions based on various factors, including price, quality, and suitability for intended use, while the consumer actually utilizes or experiences the product or service.

The other options fail to capture this crucial distinction. Aggregating purchasing data is relevant but does not define the foundational difference between a customer and a consumer. The assertion that a customer is always a business entity is misleading, as individual consumers can also be customers in many contexts. Finally, having financial authority over a purchase aligns more with the concept of decision-making in procurement but does not specifically differentiate between customer and consumer roles. Thus, the correct answer effectively highlights the essential distinction that a customer may buy without