MACAUYAG, JOHN MARC

MMEL 5

Week 1-3

Title: Fact and Idea review 

Things to do: Read the following questions carefully and provide your rational answer.

Why are there more transactions in B2B markets than B2C markets? Why are there fewer buyers?
 B2B markets have more transactions since business products are typically costly and complex.
 In B2B markets, there are also fewer consumers, but those that do exist spend much more
money and also have higher expectations for the products they buy.
Why do firms experience a bullwhip effect in the demand for their products when consumers demand
changes?
 The bullwhip effect on a supply chain happens when shifts in customer demand prompt
businesses in the chain to place more orders for products to satisfy the new demand. The supply
chain companies' individual demand projections are the primary operational driver of the
bullwhip effect. Not the actual consumers who will buy the items, but rather the supply chain
companies, experience a spike in demand as a result.

Assessment (summative)

Identify a product that is sold to the market and make a comparison its B2B market characteristics and
B2C market characteristics.

Shopping Goods

 Shopping goods are commodities consumers typically spend more time researching and
comparing before purchase.

B2C B2B

 Simple to comprehend  Few buyers in comparison to total consumers

 Possibility of emotional and impulse purchases  A buyer-seller relationship can be established.

 Clearly defined target market  Large-scale purchases

 Reduced risk and entry costs  A purchase involves more people.

 Customers who are price-conscious  Focus is on price and cost-saving

Study Questions
 1. What makes the video games more popular?

2. How does joint demand occur?


Learning Activities

Title: Fact and Idea review

Things to do: Read the following questions carefully and provide your rational answer.

Why are there more transactions in B2B markets than B2C markets? Why are there fewer buyers?
 B2B markets have more transactions since business products are typically costly and complex.
 In B2B markets, there are also fewer consumers, but those that do exist spend much more
money and also have higher expectations for the products they buy.
Why do firms experience a bullwhip effect in the demand for their products when consumers demand
changes?
 The bullwhip effect on a supply chain happens when shifts in customer demand prompt
businesses in the chain to place more orders for products to satisfy the new demand. The supply
chain companies' individual demand projections are the primary operational driver of the
bullwhip effect. Not the actual consumers who will buy the items, but rather the supply chain
companies, experience a spike in demand as a result.
Assessment (summative)

Identify a product that is sold to the market and make a comparison its B2B market characteristics and
B2C market characteristics.

Shopping Goods
 Shopping goods are commodities consumers typically spend more time researching and
comparing before purchase.
B2C B2B

 Simple to comprehend  Few buyers in comparison to total consumers

 Possibility of emotional and impulse purchases  A buyer-seller relationship can be established.

 Clearly defined target market  Large-scale purchases

 Reduced risk and entry costs  A purchase involves more people.

 Customers who are price-conscious  Focus is on price and cost-saving