Business Markets and

Business Buyer Behavior

Markets an Overview
B to C  B2C  B-C
Business to consumer markets
Consumer products
B to B  B2B  B-B
Business to business markets
Industrial products
Consumer products sold through intermediaries
C to C  C2C  C-C
Consumer to consumer market
Trade/exchanges
Olx, ebay
Examples of B2B Markets
What is a Business Market?

The Business Market - all the organizations

that buy goods and services to use in the
production of other products and services
that are sold, rented, or supplied to others.

Business markets involve many more dollars

and items than the consumer markets.
 Characteristics of Business Markets
Market
MarketStructure
Structureand
andDemand
Demand
•• Fewer,
Fewer,larger
largerbuyers
buyers
•• Geographically
Geographicallyconcentrated
concentrated
•• Demand
Demandderived
derivedfrom
fromconsumers
consumers
•• Inelastic
Inelasticdemand
demand
•• Fluctuating
Fluctuatingdemand
demand
Nature
Natureof
ofthe
theBuying
BuyingUnit
Unit
•• More
Morebuyers
buyers
•• More
Moreprofessional
professionalpurchasing
purchasing
effort
effort
Types
Typesof
ofDecisions
Decisions&&the
the
Decision
DecisionProcess
Process
•• More
Morecomplex
complexdecisions
decisions
•• Process
Processis ismore
moreformalized
formalized
•• Buyer
Buyer and seller aremore
and seller are more
dependent on each other
dependent on each other
•• Build
Buildclose
closelong-term
long-termrelationships
relationships
with customers
with customers
Model of Business Buyer Behavior
Product Economic
Price Stimuli
Other Stimuli Technological
Other
Place and
Marketing and
Marketing Political
Promotion Cultural

Organizational Interpersonal
The Buying Center
Influences and Individual
Buying Decision Influences
Process
Organization
Buying Organization
The Buying
The

Product or Service Delivery Terms

Choice Response
Buyer’s Response
Buyer’s and Times
Supplier Choice Service Terms
Order Quantities Payment
Business Buying Situations

New
New Task
Task Buying
Buying
Involved Decision Making

Modified
Modified Rebuy
Rebuy

Straight
Straight Rebuy
Rebuy
Participants in the Business Buying Process: The
Buying Center

Gatekeepers Users

Buying
Buying
Deciders Center
Center Influencers

Buyers
 Buyers
Buyers
Individual
Individual
Age,
Age,Education,
Education,Job
JobPosition,
Position,Personality
Personality&&
Risk
RiskAttitudes
Attitudes
Interpersonal
Interpersonal
Authority,
Authority, Status,
Status, Empathy
Empathy &&
Persuasiveness
Persuasiveness
Organizational
Organizational
Objectives,
Objectives,Policies,
Policies,Procedures,
Procedures,
Structure,
Structure,&&Systems
Systems
Environmental
Environmental
Economic,
Economic,Technological,
Technological,Political,
Political,Competitive
Competitive&& Cultural
Cultural
Major Influences on Business Buying
 Performance
Performance Review
Review
Order
Order Routine
Routine Specification
Specification
Supplier
Supplier Selection
Selection
Proposal
Proposal Solicitation
Solicitation
Supplier
Supplier Search
Search
Product
Product Specification
Specification
General
General Need
Need Description
Description
Problem
Problem Recognition
Recognition
Stages in the Business Buying Process
THANK YOU