Consumer market refers to the market where people purchase products/services for consumption and are not meant for further sale. This market is dominated by the products which consumers use in their daily life. Each time a consumer purchases a commodity for his own usage he/she is participating in a consumer market. Consumer market is applicable to both products and services. The consumer has high decision power as the product or service which is being purchased is for self use. Consumer market are traditionally assumed to be offline but with advent of eCommerce, consumer markets can even be online.
Primarily there are four types of consumer markets;
1. Food and beverages,
3. Consumer products
4. and Transportation.
In consumer market purchasers make their own decisions to purchase the products and these products can be used for personal use or can be shared with others. Marketing plays a role of paramount importance in consumer markets by influencing customer’s preferences and purchasing decisions and educating them on the options available in the market. Brand loyalty of consumer plays a significant role in consumer markets. Consumer markets are different from business markets in the sense that in business markets products are sold to different businesses and intermediaries for further sale.
Consumer Markets are very important in the marketing ecosystem as it is the place where maximum buying by a customer is done. Marketing in consumer markets depends a lot on type of consumers. The type of consumer is segmented by their characteristics. The characteristics may be demographic, psychographic, behavioristic or geographic in nature. Demographic characteristics consider differences and similarities in age, gender, occupation, income and education. Companies identify these characteristics through markets surveys. Psychographic characteristics considers values, opinions, interests and attitudes.
A vegetable and fruits store above can be a simple consumer market.
Companies understand these characteristics of consumers by conducting focus group discussions and use this information for the betterment of their marketing campaigns. Behavioristic characteristics of consumers include brand loyalty, consumer status and this information can be collected through market research. Geographic characteristics include region, market size and market density. For example; a company selling raincoats will be more active in tropical areas and less active in dry regions.
If you are purchasing grocery from a retail store in your area, you are participating in a consumer market. In this market, the buyer is the end consumer who is buying the products for his/her own consumption and not for further selling unlike a wholesale market where buying can be done for further selling.
Hence, this concludes the definition of Consumer Market along with its overview.
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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