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.
Types of B2B Buyers
Key Takeaway
Business
buyers can be either nonprofit or for-profit businesses. There are four
basic categories of business buyers: producers, resellers, governments,
and institutions. Producers are companies that purchase goods and
services that they transform into other products. They include both
manufacturers and service providers. Resellers are companies that sell
goods and services produced by other firms without materially changing
them. They include wholesalers, brokers, and retailers. Local, state,
and national governments purchase large quantities of goods and
services. Institutional markets include nonprofit organizations such as
the American Red Cross, churches, hospitals, charitable organizations,
private colleges, civic clubs, and so on. Holding costs down is
especially important to them because it enables them to provide their
services to more people. Figuring out who exactly in B2B markets is
responsible for what gets purchased and when often requires some
detective work by marketing professionals and the salespeople they work
with.