Business-to-Business Markets

06

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Definition

Business Buyer Behavior: The buying behavior

of organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit.

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Characteristics of Business Markets Sales in the

business market far exceed sales in consumer markets.

Business Markets

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Business Markets

Marketing Structure and DemandNature of the Buying UnitTypes of Decisions and the Decision Process

Compared to consumer markets: Business

markets have fewer but larger customers

Business customers are concentrated geographically

Demand is differentDerived demand

Price inelastic

Fluctuates more, and changes more quickly

Characteristics

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Business Markets

Marketing Structure and DemandNature of the Buying UnitTypes of Decisions and the Decision Process

Compared to consumer purchases: Business

purchases involve more buyers in the decision process.

Purchasing efforts are undertaken by professional buyers.

Characteristics

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Business Markets

Marketing Structure and DemandNature of the Buying UnitTypes of Decisions and the Decision Process

In comparison to consumer purchases: Business

buyers face more complex buying decisions.

The buying process is more formalized.

Buyers and sellers work together closely and build long-term relationships.

Characteristics

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Model of Business Buyer Behavior

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Major Types of Buying Situations Straight rebuy

Reordering without modification

Modified rebuy Requires modification

to prior purchase New task

First time purchase

Business Buyer Behavior

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Business Buyer Behavior

Participants in the Buying Decision Process

Users

Buyers

Influencers

Deciders

Gatekeepers

DECIDERINFLUENCER

GATEKEEPER

BUYERUSER

Buying Centers

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Major Influences on Business Buyer Behavior

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Stages of the Business Buying Process