The selling environment in any business transaction presents unique differences. As such, business markets and consumer markets are different in many aspects, although often overlooked. While the business markets consist of businesses that acquire products and services used in the production of other goods and services, consumer markets consist of businesses that sell goods to the final consumers. This article outlines the differences between business markets and consumer markets. Show
What are a Business Markets?As mentioned, business markets refer to organizations, businesses or entities that acquire products and services for use in the production of other services and products. These include goods that are supplied, sold or rented to others. Among major players in business markets include fisheries, agriculture, mining, transportation, construction, mining, communication, finance, distribution and insurance services. Many people are investing in more resources and money in business markets. A case in point is Tesla’s plan to invest $5 billion in its new eclectic car and battery, commonly referred to as ‘Gigafactory’ in Europe. Different suppliers will then provide accessories and parts. Characteristics of business markets include;
What are Consumer Markets?This is a market whereby businesses or producers sell their products or services directly to the final consumers. Marketing in consumer markets involves dividing the consumers into markets and targeting them according to their likes, interests, dislikes, values and opinions. Characteristics of consumer markets include;
Features of consumer markets include;
Examples of these markets include clothing stores, grocery stores, franchises and car dealerships. Similarities between Business market and Consumer market
Differences between Business market and Consumer marketDefinitionBusiness markets refer to organizations, businesses or entities that acquire products and services for use in the production of other services and products. On the other hand, consumer markets refer to markets whereby businesses or producers sell their products or services directly to the final consumers. DemandWhile business markets have inelastic demand, consumer markets have an elastic demand. Number of buyersBusiness markets have fewer buyers who often buy in large quantities. On the other hand, consumer markets have many buyers who purchase in small quantities. Buying processWhile business markets have formalized buying processes whereby the purchasing process involves following the organization’s protocol and the complete chain of command, consumer markets do not have formalized buying processes. Decision makingSince business markets entail many products, decision making before purchases are made is slow. On the other hand, the decision making in consumer markets is fast since impulse buying is rampant. InvestmentsWhile business markets invest heavily in capital equipment, consumer markets invest heavily in marketing and promotion activities. Market segmentationBusiness markets segment their businesses based on the industry, ownership, level of technology and end market reached. On the other hand, consumer markets segment their businesses based on demographic, behavioristic, psychographic and geographic characteristics. Business market vs. Consumer market: Comparison TableSummary of Business market vs. Consumer marketBusiness markets refer to organizations, businesses or entities that acquire products and services for use in the production of other services and products. They have fewer buyers who often buy in large quantities and segment their businesses based on the industry, ownership, level of technology and end market reached. On the other hand, consumer markets refer to markets whereby businesses or producers sell their products or services directly to the final consumers. They have an elastic demand and segment their businesses based on demographic, behavioristic, psychographic and geographic characteristics. Both, however, play an important role in the supply chain.
Tabitha graduated from Jomo Kenyatta University of Agriculture and Technology with a Bachelor’s Degree in Commerce, whereby she specialized in Finance. She has had the pleasure of working with various organizations and garnered expertise in business management, business administration, accounting, finance operations, and digital marketing. Loading... Cite Which of the following is a primary difference between business buyers and consumer?b. Business purchases are made by one individual whereas families make consumer purchases together.
What is the difference between consumer buying and business buying?Consumer purchases typically involve an individual decision maker in a single-step transaction. Compared with consumer decision making, business buying behavior is characterized by a formal multi-step process conducted professionally over a period of time, involving many people interacting within a formal organization.
What is the difference between buyers and consumers?The person who buys the goods or services from a seller is known as the Customer. The person who uses the goods or services is known as a Consumer. The customer is also known as buyer or client whereas the Consumer is the ultimate user of the goods.
What is the primary difference between a customer and a consumer quizlet?A customer buys products,while a consumer uses products.
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