Who are external customers?

• A. People or companies outside the organization to whom products or services are provided
• B. People inside the organization who receive internal services
• C. Competitors who market similar products
• D. Suppliers who provide materials to the company

Answer: (A)

External customers are the people or companies outside your organization who receive your products or services. They are the ones your business serves and aims to satisfy, because their choices to buy or use your offerings drive revenue and reputation. Inside the organization, there are people who rely on services from other parts of the same company; those are internal customers, not external. Competitors aren’t customers—they’re in the same market but not the entity you’re serving. Suppliers provide materials and inputs to your company, but they aren’t customers either.