Topic 4

TOPIC 4
BUSINESS MARKET and

BUSINESS BUYER BEHAVIOR
Boone & Kurtz, Contemporary Marketing, Nineteenth Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
4.1 Compare the major characteristics of the business market to the

consumer market.
4.2 Describe the four categories of business markets.
4.3 Describe the three major factors that influence purchase decisions in
the business market.
4.4 List the seven steps in the organizational buying process.
4.5 Outline the five roles within the buying center.
4-1
Nature of the Business Market
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4-1 Nature of the Business Market (1 of 8)
• The following characteristics distinguish the business market (B2B) from the
consumer market (B2C):
• Product
• Size and number of buyers
• Promotion
• Distribution
• Geographic market concentration
• Buyer–seller relationships
• Purchase decision process
• Products
• Products purchased in the business market are more technical and variable.
• Thus, accompanying services are usually more important.
• Example: A business purchasing several hundred printers for its offices might be able to
negotiate free servicing of those printers or a dedicated technical support line.
• Products purchased in the consumer market are more standardized.
• Size and number of buyers

• The business market features a limited number of buyers when compared to the
consumer market.
• Most of those buyers purchase larger volumes than do individual consumers.
• Example: U.S. companies pay more than $300 billion each year for office and maintenance
supplies—more than the GDP of most countries.
• Many buyers in business markets are large organizations.
• Promotion
• Promotion in the business market emphasizes personal selling.
• In the consumer market, personal selling is typically reserved for larger, more complex
purchases.
• Examples: houses, cars
• For most consumer purchases, advertising is more cost-effective.

• Example: grocery store items
• Distribution
• Business market distribution channels are typically shorter and more direct, with
products passing through fewer intermediaries compared to consumer markets.
• Geographic Market Concentration

• The U.S. business market is more geographically concentrated than the consumer
market.
• Manufacturers often converge in certain regions of the country, making these areas
prime targets for business marketers.
• Example: Several Midwestern states lead the nation in manufacturing, a significant driver of
the business market.
• Buyer–Seller Relationships
• The relationships between buyers and sellers in business markets are often more
enduring and complex than are consumer–market relationships.
• In the business market, a single transaction may generate millions of dollars for a
company.
• Purchase Decision Process

• Suppliers who serve business markets must work with multiple decision makers,
especially when selling to larger organizations.
• Managers at several levels may influence final orders.
• The overall process is more formal and professional than the consumer purchasing
process.
• Business purchases usually require longer time frames.
Exhibit 7.1 Comparing Business and Consumer
Markets
Business-to-Business Markets Consumer Markets
Products More technical and variable; accompanying More standardized; service important, but
services more important less than for business markets
Size and Number of Fewer buyers, but each is larger More buyers because it mainly consists of
Buyers individuals and households
Promotion Emphasis on personal selling Emphasis on advertising
Distribution Relatively short, direct channels to market Product passes through a number of
intermediaries en route to customer
Geographic Market More geographically concentrated because Less geographically concentrated because
Concentration business industries often cluster consumers are dispersed throughout the
market
Buyer–Seller More enduring, complex relationships Infrequent direct contact; relationships of
Relationships relatively short duration
Purchase Decision Diverse group of organization members Individual or household unit makes decision
Process make decision
4-2
Categories of Business Markets
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4-2 Categories of Business Markets (1 of 5)
• Four major categories of business markets:

• Commercial
• Reseller
• Government
• Institutional
• Defined by:
• Market size
• Participants
• Specific products sold
• Commercial market: individuals and firms that acquire products to support,

directly or indirectly, production of other goods and services
• Largest segment of the business market
• Example: Dell buying computer chips from Intel for its computers
• Some products transacted in the commercial market become components

in other finished goods.
• Example: RFID chips for computer cards
• Resellers: a business market comprised of retailers and wholesalers

• Most resale products are finished goods that buyers sell to final consumers.
Examples: clothing, appliances, automobile parts
• In other cases, buyers may further process or repackage a product before

reselling it.
• Example: a retail meat market purchasing a side of beef and then cutting and wrapping
individual pieces to sell to its customers
• Government: includes domestic institutions of government (federal, state,

and local) as well as foreign governments
• The primary motivator 动机 behind government purchasing is to provide

some form of public benefit.
• Examples: infrastructure, national defense
• Institutional: includes hospitals, churches, skilled care and rehab centers,

colleges and universities, museums, and not-for-profit agencies
• Some institutions must rigidly follow standardized purchasing procedures.

• Example: public higher education
• Others have less formal buying practices.
4-3
The Business Buying Process
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4-3 The Business Buying Process (1 of 4)
• In the business market, the buying process is more complex than in the
consumer market.
• Business purchasing takes place within a formalized framework of budgets,
cost projections, and profit considerations.
• To understand buying behavior, business marketers need to know
influences on the purchasing decision process:
• Environmental factors
• Organizational factors
• Interpersonal influences
• Environmental factors: economic, political, regulatory, competitive, and

technological considerations
• All of these factors influence business market purchasing.
• Organizational Factors: Because purchasing methods differ among firms,

successful B2B marketers must understand their clients’:
• Organizational structures
• Policies
• Purchasing processes
• An equipment supplier hoping to sell to MyMap would want to know this information before
providing the company with a proposal.
• Interpersonal Influences:
• Many people may influence business market purchases.
• Considerable time may be spent obtaining the input and approval of various members
of a firm.
• Business marketers should know:
• The person(s) in an organization who will influence buying decisions
• Each of those person’s priorities
• The technical features of their products
4-4
The Organizational Buying Process
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Boone&&Kurtz,
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4-4 The Organizational Buying Process
• This buying process follows a sequence of activities.

• Not every buying situation requires every step.
• Marketers to business customers must familiarize themselves with the
entire process in order to be most effective.
Exhibit 7.3 Stages in the B2B Buying Process
4-5
Buying Center Roles
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4-5 Buying Center Roles (1 of 6)
• Buying center: encompasses everyone involved in any aspect of a

company’s buying activity
• Not part of firm’s formal organizational structure
• Typically five main roles:
• Users
• Influencers
• Gatekeepers
• Buyers
• Deciders
• Users: people who actually use a good or service

• Their influence on the purchase decision will vary, depending on the situation.
• Users may:
• Initiate purchase actions by requesting products
• Help develop product specifications for custom designs
• Influencers: people who affect the buying decision by supplying

information to guide the evaluation of alternatives, or by establishing buying
specifications
• Typically technical staff

• Examples: engineers, quality-control specialists
• Gatekeepers: people who control the information that all buying center
members ultimately review
• May exert this control by:
• Distributing printed product data or advertisements
• Deciding which salespeople may speak to certain individuals in the buying center
• Buyers: people who have the formal authority to select a supplier and begin
securing the good or service
• Deciders: people who actually select a good or service
• In many cases, the buyer and the decider are the same person.
• In other cases, the buyer may have the authority to select a supplier, but
someone else provides the final sign-off on the purchase.
• Finding the identity of the decider can be difficult for the salesperson to
uncover.

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BUSINESS MARKET and

4.1 Compare the major characteristics of the business market to the

• Products purchased in the consumer market are more standardized.

• Size and number of buyers

• Many buyers in business markets are large organizations.

• For most consumer purchases, advertising is more cost-effective.

• Geographic Market Concentration

• Purchase Decision Process

Promotion Emphasis on personal selling Emphasis on advertising

• Four major categories of business markets:

• Commercial market: individuals and firms that acquire products to support,

• Some products transacted in the commercial market become components

• Resellers: a business market comprised of retailers and wholesalers

• In other cases, buyers may further process or repackage a product before

• Government: includes domestic institutions of government (federal, state,

• The primary motivator 动机 behind government purchasing is to provide

• Institutional: includes hospitals, churches, skilled care and rehab centers,

• Some institutions must rigidly follow standardized purchasing procedures.

• Others have less formal buying practices.

• Environmental factors: economic, political, regulatory, competitive, and

• Organizational Factors: Because purchasing methods differ among firms,

• Each of those person’s priorities

• The technical features of their products

• This buying process follows a sequence of activities.

• Buying center: encompasses everyone involved in any aspect of a

• Users: people who actually use a good or service

• Influencers: people who affect the buying decision by supplying

• Typically technical staff

• May exert this control by:

• Distributing printed product data or advertisements

• Deciders: people who actually select a good or service

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