The term "consumer" is indeed used to refer to individuals or entities who purchase products, not services. This differentiation between products and services is based on historical and practical reasons, as well as the way these terms have been traditionally used in economics and business contexts.
Historical context: The concept of consumerism and the study of consumer behavior originated during the industrial revolution when the focus was primarily on the production and distribution of tangible goods (products). During this period, the term "consumer" was introduced to describe individuals who were purchasing and consuming these tangible goods.
Economic distinction: Economists and businesses have traditionally made a distinction between goods (products) and services. Goods are tangible items that can be seen and touched, such as electronics, clothing, and food items. Services, on the other hand, are intangible and involve actions or tasks performed by one party for the benefit of another, such as haircuts, legal advice, or healthcare.
Consumer protection laws: Many countries have specific consumer protection laws that govern the sale of goods and services separately. The regulations, warranties, and liabilities may differ between the two, necessitating a clear distinction.
Marketing and market research: In marketing and market research, consumers are often segmented based on their buying behavior and preferences for products. Since consumer behavior can differ significantly when purchasing goods versus services, the distinction is helpful for understanding and targeting specific consumer groups.
While the term "consumer" is generally associated with products, it's important to note that when it comes to services, the more appropriate term used to refer to those who purchase services is "customer" or "client." Customers or clients engage in service-based transactions rather than traditional consumer transactions involving tangible products.
In summary, the usage of the term "consumer" to refer to those who buy products, not services, is a historical and practical convention that aligns with the traditional economic distinction between goods and services.