1. Define the business market and explain how business markets differ from consumer markets.

The business Market comprises all organizations that buy goods. It is a process of
selling the products and services in other businesses. They can either resell them or use
as a raw material in the manufacturing of other product.

Although often overlook, the business market and consumer market differ in many aspects.

The business market comprises organizations that obtain items and services on the
creation of different products and services. They have fewer buyers who often buy in
bulk. And segment their business based on ownership, technology, and the market
reached.

On the other hand, Consumer Market is consisting of businesses that sell products
directly to the consumers. That has a versatile demand and segment their business
based on demographic, behavioral, psychological, and geographical characteristics.

2. Identify the major factors that influence business buyer behavior.

The four major factors that influence business buyer behavior: Environmental,
Organizational, Interpersonal, and Individual Factor.
3. List and define the steps in the business buying decision process.

• Problem Recognition
The business buying decision process starts with problem recognition. It is the
step in which someone from the company recognizes a problem or a need that
can be met by acquiring a specific product or service. Problem recognition can
result from an Internal and External stimulus.

• General Need Description

When they perceive that a need exists, the purchasers must portray to ensure that
everybody comprehends both the necessity and the arrangement of an idea that the
organization needs. Working with engineers, clients, buying specialists, and others,
the purchaser can recognize and organize the details of item qualities. Furnished
with information, this purchaser sees practically all the item related worries of a
run of the mill client.

• Product Specification
The product Specification stage requires technical specifications. It is usually the
responsibility of the engineering department. Engineers design alternatives with
detailed specifications that the organization needed. These specifications that they
create should align with the earlier stages.
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 • Supplier Search
The buyer then searches for the most appropriate supplier. The buyer creates a
standard search in identifying the kind of supplier that they need, one that has a reputation
of giving a high quality of service, excellent partnership, and good value for the money.
This step involves the use of the internet or websites in searching and sifting products and
company reviews. Buyers also consult trade directories, publications, and colleagues from
other companies for recommendations.

• Proposal Solicitation
In this next stage of the process, the qualified suppliers are asked to submit their
proposals. Depending on the nature of the purchase, some suppliers prefer utilizing their
websites, sending catalogs, or sending one of their sales representatives. Complex
transactions typically require the submission of detailed proposals outlining the highlight
specification that the buyer needs along with timing and pricing.

• Supplier Selection
At this stage, the buyer screens the proposals and decides on selecting the supplier or
suppliers. The selection process is guided by standards in which the buyer creates while
reviewing the propositions of the suppliers. They also consider the supplier’s capabilities,
reputation, and customer references.

• Order Routine Specification

The buyer now finalizes their order with the chosen supplier, listing the needed
specifications, quantity, and warranties. At this stage, the buyer and supplier work together
for a smooth transaction and delivery of products.

• Performance Review
In this stage, the buyer reviews the supplier’s performance and gives feedback on the
service that they have experienced. The performance review can change how the
organization works in improving efficiency, customer satisfaction, and the quality of their
services towards their customers.