What is the difference between the consumer market and the business market Quizlet

The main differences between business and consumer markets are summarized on this slide.

The first characteristic demand is described on the next slide.

-Purchase volume: Business customers buy in larger quantities than consumers.

-Number of customers: Business marketers have fewer customers than consumer marketers. An advantage is that it is easier to identify buyers, monitor customer needs, and build personal relationships. A disadvantage is that each customer becomes crucial, especially for those manufacturers who have only one customer.

-Location of buyers: Business customers are more geographically concentrated than consumers.

-Distribution structure: Business products typically have shorter channels of distribution, and direct channels are common. On the other hand, consumer products pass through a distribution system that may include the producer, the wholesaler(s), and the retailers.

-Nature of buying: More people are involved in a business market purchase decision than in a consumer purchase. Representatives from quality control, marketing, finance, and purchasing may be grouped in a buying center.

-Nature of buying influence: Typically, more people are involved in a single business purchase decision than in a consumer purchase.

-Type of negotiations: Negotiation is more common in business marketing decisions and may take months to work out the final contracts.

-Use of reciprocity: Business purchasers often choose to buy from their own customers. It is not unethical or illegal unless the exchange is coerced.

-Use of leasing: Businesses commonly lease expensive equipment to reduce capital outflow, keep state of the art products, and gain tax advantages.

-Primary promotional method: Business marketers emphasize personal selling, especially for expensive, custom-designed products.

See slide #7

Business buying behavior is distinguished by five fundamental characteristics.

First, buying is normally undertaken by a buying center consisting of many people who range widely in authority level.

Second, business buyers typically evaluate alternative products and suppliers based on quality, service, and price—in that order.

Third, business buying falls into three general categories: new buys, modified rebuys, and straight rebuys.

Fourth, the ethics of business buyers and sellers are often scrutinized.

Fifth, customer service before, during, and after the sale plays a big role in business purchase decisions

Producers:
-Individuals or firms that purchase products for use in the production of other goods and services

Resellers:
-Individuals or firms that buy finished goods for reselling, renting, or leasing

Organizations: Government markets:
-Federal, state, county, and local governments that buy goods and services to carry out public objectives, and support their operations

Organizations: Not-for-profit firms:
-Organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members

Recommended textbook solutions

Mathematics with Business Applications

6th EditionMcGraw-Hill Education

3,760 solutions

Marketing Essentials: The Deca Connection

1st EditionCarl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese

1,600 solutions

Mathematics with Business Applications

6th EditionMcGraw-Hill Education

3,760 solutions

Business Math

17th EditionMary Hansen

3,734 solutions

1) personal sources - family, friends, neighbors

2) commercial sources - advertising, internet, salesperson, dealers, display

3) public sources- mass media, consumer organizations

4) experiential sources- handling, examining, using the product.

What is the difference between consumer market and business market?

How does the consumer market differ from the business market quizlet?

What is a difference between a consumer product and a business product quizlet?