Business Buying Behavior
Read this chapter, which provides an overview of business-to-business buying behavior. This chapter discusses how B2B markets differ from B2C markets, types of B2B buyers, buying centers, and stages of the B2B buying process. The chapter wraps up with a discussion of international B2B markets, e-commerce, and ethics in the B2B market. From this reading, you will learn what a buying center is and will be able to name the members of buying centers and describe their roles. Pay special attention to the concepts of the decision-making unit (DMU) and the purchase process.
The Characteristics of Business-to-Business (B2B) Markets
Key Takeaway
B2B
markets differ from B2C markets in many ways. There are more
transactions in B2B markets and more high-dollar transactions because
business products are often costly and complex. There are also fewer
buyers in B2B markets, but they spend much more than the typical
consumer does and have more-rigid product standards. The demand for
business products is based on derived demand. Derived demand is demand
that springs from, or is derived from, a secondary source other than the
primary buyer of a product. For businesses, this source is consumers.
Fluctuating demand is another characteristic of B2B markets: a small
change in demand by consumers can have a big effect throughout the chain
of businesses that supply all the goods and services that produce it.