Answer to Question #168174 in Marketing for Sunny

Question

Business markets have several characteristics that contrast sharply with those of consumers markets . Name and briefly characterize five of those contrasts.

Answer 1

Business market characteristics can be detected by comparing them with the consumer market characteristics. Despite the several differences in business markets and consumer markets, the major ones are based on; the demand, market structure, the nature of buying unit, the type of decisions and the decision process. In terms of;

a)     Market structure- Business markets deal with fewer buyers who are involved in most of the purchasing. Mostly, less companies that act as purchasers on business markets amount a larger purchase than consumer purchase.

b)     Demand- Besides demand fluctuates more on business markets than on consumer markets which is more stable.

c)     Nature of the buying unit- the business markets involve more buyers as it is specialized on professional purchasing effort whereas the consumer markets have a simpler purchasing effort.

d)     Types of decisions-Business markets buyers are known to face more complex decisions than consumer markets, since purchases involves larger sums of money and more complex and technical contemplations.

e)     Decision process- In business markets, the process of decision making of the buyer is usually higher than that of the consumer markets.