What is Consumer Market? - Definition & Example

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  • 0:00 What Is a Consumer Market?
  • 0:35 The Largest Market
  • 1:45 Example of a Consumer Market
  • 2:40 Lesson Summary
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Lesson Transcript
Instructor: Tara Schofield
Learn what a consumer market is in this lesson. Go over an example of a real consumer market and see how consumers are able to make purchasing and buying decisions within such a market.

What Is a Consumer Market?

Each time you buy a product or service, you are participating in the consumer market. Whether you're picking up groceries for the week or paying to get your car washed, you're part of this larger system.

A consumer market is the very system that allows us to purchase products, goods, and services. These items can be used for personal use or shared with others. In a consumer market, you make your own decisions about how you will spend money and use the products you purchase. The more people who go out and actively purchase products, the more active is the consumer market.

The Largest Market

The consumer market in the United States is made up of approximately 300 million consumers. The United States has the largest consumer market in the world. Consumers spend more money in the U.S. than in any other country.

Because this market is so large, it is helpful to break it down into more manageable segments. Within the consumer market, there are subsets that can be identified based on demographics and other groupings. Some of these subsets include age, gender, interests, income level, and geographic location. The consumer market is the umbrella that covers all of the segments that can be created within that huge market.

In a consumer market, marketing provides a critical role in educating people on what buying options are available. Because consumers are empowered and can make their own purchasing decisions, they also have more choices to make. As a result, it becomes more vital that companies educate potential customers about their products and encourage them to buy their products. This encourages a more diverse and vibrant free market system that provides the opportunity for more variety and options.

Example of a Consumer Market

A consumer market is a very diverse and robust system. Whether a consumer is making a purchase at a home party or at a huge department store, they are part of the consumer market.

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