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Problem

Explain how a company such as GE might be classified by some business marketers as a user customer but by others as an OEM customer.

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Step 1/2

The User customers are the type of businesses that directly deals and make transactions with the customers. On the other hand, OEM (Original Equipment Manufacturer) customer supplies equipment to various companies to resell or incorporate into another product using the reseller’s brand name.

Step 2/2

GE is a US based company that deals with of electric appliances. It is apt to term GE as both ‘User customer’ and ‘OEM’ as on the following reasons:

• GE manufactures various appliances for its esteemed individual customers worldwide and possess a brand value, which depicts user customer

• It is also engaged in providing equipment to wide range of companies either to resell or to incorporate into another product to manufacture, which depicts OEM customer

For example:

GE produces and sells power-stabilizers for the equipment in the hospitals and the same is utilized for in-house purposes in its manufacturing concerns.

Thus, GE can be classified as ‘User customer’ and ‘OEM’