What distinguishes a consumer from a customer?

The distinction between a consumer and a customer is primarily based on the nature of their relationship with a business or service provider. A consumer is defined as anyone who obtains an insurance product, which includes individuals who may utilize a service or product for personal use without necessarily maintaining an ongoing relationship with the seller. This reflects a broader definition that encompasses all individuals who buy or use products or services.

In contrast, a customer implies a more sustained interaction with a business, signifying not just a transaction but an ongoing relationship that may involve repeat purchases or continuous service. This means that while all customers can be considered consumers, not all consumers are customers in the sense of having a continuous relationship with the provider.

This clarification helps in understanding the roles individuals play in transactions and their different levels of engagement with products or services.