Characteristics of Consumer Markets:
On the other hand, refers to the transaction of goods and services between organizations and potential customers.
B2C markets, on the other hand, presents a very simplified procurement process because influences are not as complex as it is with B2Bs. The most common factors that affect consumers purchasing decisions include; reference groups, tastes and preferences, marketing campaigns and economic conditions.
- Behaviouristic characteristics: These include consumer interests in a product such as how they intend to use it.
- Demographic characteristics: This is the foundation for understanding consumers and include ethnicity, age, income, gender, occupation, religion, nationality, social class, education and social class.
- Geographic characteristics: This is information regarding where the consumer lives. It includes the climate, religion or how densely populated the geographical area is.
- Psychographic characteristics: This entails the kind of lifestyle the customer lives, their interest, opinions and attitudes as well as personal values.
Characteristics of business markets:
Business Marketing refers to the sale of either products or services or both by one organization to other organizations that further resell the same or utilize to support their own system.
- Geographically concentrated customers: Customers in these markets are at vast geographical locations.
- Presence of fewer but larger buyers: While the buyers may be few, they often buy in large quantities.
- Final customer demand-driven: Since production is tailored for the final consumer, the products are tailored towards the final consumers’ wants and needs.
- Quick fluctuation in demand: Since businesses prefer to buy sat the lowest prices, an increase in prices decreases the products purchases since high price selling products do not sell well in the market.
- Inelastic demand: The prices in these markets do not affect the demands as they do not change much.
- Has a formalized buying process: The purchasing process involves following the organization’s protocol and the complete chain of command.
- Professional purchasing units: Due to the need of maintaining a high level of professionalism, the purchasing process is very detail-oriented.
Business 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.
Demand
While business markets have inelastic demand, consumer markets have an elastic demand.
Buying process
While 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.
Number of buyers
Business markets have fewer buyers who often buy in large quantities. On the other hand, consumer markets have many buyers who purchase in small quantities.
Investments
While business markets invest heavily in capital equipment, consumer markets invest heavily in marketing and promotion activities.
Decision making
Since 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.
Market Segmentation
Business 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.