One of the criteria for differentiating consumer markets from industrial ones is the?

A. type of demand
B. type of supply
C. nature of service rendered
D. price of the goods

Correct Answer:

Option C – nature of service rendered

Explanation

The basic difference is Industrial market (Factor Market) is the market which produces goods and services, with inputs like labour, land, and machinery and these goods are consumed by Consumers in Consumer Market (Product Market).

In Consumer Market, the buyer is always the end consumer of goods where as in the Industrial Market, the buyer is not the end-user of goods rather the one who will be processing it further to make it available for the end-users.

In a consumer market, the consumer uses the product for personal use but in an industrial market, the industry uses the products as supplies or/ and to do operations.