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QUESTION: EXAMINE THE BUSINESS TO CONSUMER MODEL SHOWING

THE DIFFERENCE FROM CONSUMER TO BUSINESS.
Business to consumer model is when a business sells products online, or via a mobile
device, directly to consumers. Consumer-to-business is a business model in which
consumers create value and businesses consume that value. For example, when a
consumer writes reviews or when a consumer gives a useful idea for new product
development then that consumer is creating value for the business if the business
adopts the input.

Business to consumer is the acronym for "business-to-consumer", is a business model

based on transactions between a company, that sells products or services, and
individual customers who are the end-users of these products. The business to
consumer e-commerce definition suggests the commerce transaction through a
company website featured with online catalog.

Advantages of the business to consumer model is that there is Great Customer

Service. Customers can directly communicate with your website by using business to
consumer Ecommerce software. In this way, one will get an appreciation and
satisfaction from your customers by providing them a good customer service. Thus
being an advantage of business to consumer model.

Another advantage of business communication is that there is business growth. There

will get a great opportunity of expanding your business by using business to consumer
E-commerce Soft wares. Because old and traditional ways of business to consumer E-
commerce do not provide the facility to reach everywhere, due to lack of resources
and approach etc. But new and modern ways of business to consumer E-commerce
provide great chances to reach a level of your business that you had never achieved
but only dreamed.

Also, another advantage is that there is the scope of Niche Marketing. Traditional
ways of business to consumer marketing also provide niche marketing, but the most
recent business to consumer business tactics will allow all business holders much
more opportunities to get In traditional business, we have got niche marketing but
here you can widen your idea. You can have more opportunities to hit the business
market as well as to succeed in their online business.

Furthermore, there is Low-cost than traditional Businesses. Planning a shop involves

a lot of expenses for placing its stuff. But with the evolution of E-commerce business
to consumer business, it is very easy to set up a business and get profit from your
customers. In addition to it, you do not have to worry about the space of placing your
stuff.

The disadvantages of business to consumer model is Competition. The flip side of the
huge market & low barriers to entry already discussed, is the huge competition that is
present in the business to consumer ecommerce market. There are so many
ecommerce businesses already operating in almost every conceivable product
category that it can feel overwhelming when starting a new business. Competition
inevitably includes price competition, too. You must be able to compete against
established businesses with purchasing power and efficient, low-cost operations. You
will need to learn to live with competition and find a way to attract customers despite
this.
Another disadvantage is finding and retaining customers is hard. As a direct
consequence of the huge competition you have to design and fund marketing efforts
that are successful for your business. Marketing is a whole science in its own right,
but the essence of this is to understand in exacting detail who your customer is, what
is important to her, how she likes to research, be inspired by, purchase and receive the
types of product you are selling. You need to design your whole operation around
serving your customer niche. If you do this, you can still be successful despite the
competition. Nevertheless you need to be prepared to pay significant amounts of
money on marketing, to find and attract your customers. It is not exceptional to have
to spend 30% or more of an average order value in order to attract one new customer.
At this level of spend your business may only be break-even or even be loss making.
Therefore it is critical that once you have a customer you find ways to keep them
coming back, as the cost of selling to existing customers is much lower than the cost
of acquiring new ones. Your existing customers are your source of profit whereas
your new customers are your source of sales growth.

The difference between business to consumer and consumer to Business is that a

business to consumer business markets and sells directly to customers, while
consumer to businesses rely on the actions of an intermediary, the consumer to market
their business.

Another difference between business to consumer and consumer to business is that

the consumer to business model gives more power and control to the consumer, and
relies on them to provide value to the company, rather than the reverse. Whilst
business to consumer model market itself so as to make profits and manage consumer
relationship.

Moreover another difference between business to consumer and consumer to business

is that consumer to business is the electronic commerce business model in which
consumer can offer products and services to companies, and the companies pay the
consumer. The business model is a complete reversal of the traditional business model
in which companies offer goods and services to consumer. But business to consumer
is a model in which businesses offer products and services to consumers directly
through various selling methods that may include internet (electronic commerce) ,
physical on site selling or any other method that does not include middleman.

In a nutshell, it is clear the both models involve selling to either one of the parties;
business or consumer, mainly depending on the type of product or service that is
being offered. Hence business controllers should understand business models so as to
achieve the goals of their businesses
Reference List
Zwass V. (2003) “Electronic Commerce and Organizational Innovation:
Aspects and Opportunities “, 89-122
Ramboll Management ‘ICT and E-Business Impact in the Banking Industry’,
Version 4.0, 2008.
Ravikumar Jain B., Krishna Kishore P., (2008), “Internet Banking”, ICFAI
University Press, 69-88
P.T. Joseph, S.J., (2009) “E-Commerce an Indian Perspective”, PHI, pp. 304-
503.
Laudon, K. and Traver, C. (2008), “ E-Commerce: Business, Technology,
Society”, 4th Edition, Prentice Hall, pp.48-67