Published by MBA Skool Team, Last Updated: October 30, 2014
What is Final Consumer?
A final consumer is the last point in a distribution channel. The final consumer can be reached directly or through multiple levels of channels in between the manufacturer and the end consumer. The final consumer can be a human being or a company that using that particular product or services. The final consumer is purchasing the goods directly for his/her own consumption.
It is a type of strategy promotion that is primarily focused on the end users of the products and services. This typically involves advertising and sales promotion rather than personal selling.
The distribution route can be short or drawn out. When a consumer goes to a restaurant and eats the distribution channel is short as the restaurant is the producer and individual is the final consumer. The distribution channel becomes more drawn out if the person goes to grocery store to buy ingredients and cook. Here the grocery store becomes an intermediary.
Example of final consumer: steel companies consuming iron ore to manufacture steel, mechanics using screw drivers manufactured using the steel. Here both steel and steel manufactured items are final products and hence the steel manufacturer and mechanic are considered to be final consumers.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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