Systems Economics Lexicon · Economic Agents and Relationships

Customer

The economic agent consuming the enterprise’s product as part of its own operations.

StatusSupporting term
SectionEconomic Agents and Relationships

Understanding Customer

The Locus Model’s definition of “customer” deliberately departs from the conventional business meaning: rather than the direct purchaser, the Customer is the end user of the enterprise’s product. For most activity products these coincide, but for resource products they frequently diverge, especially across multi-step supply chains — the textbook gives examples of a car’s end user (the driver, not the dealership), a steel I-beam’s end user (the office tenant, not the construction company or landlord), and copper that changes ownership many times before final incorporation into a laptop. This usage connects directly to the Resource Product/Activity Product distinction, since the product reaches the customer as either a subject resource (resource product) or a fulfilled activity (activity product). Critically, the Locus Model does not treat the customer as a terminal recipient but as another Economic System with its own Activity Cycle, which is precisely what allows product usage to be traced beyond the point of sale, into Customer of Customer and beyond.

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