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Consumer buying is where the final consumer buys goods and services for the personal consumption. In other words consumer buying means the day to day purchases by individuals to satisfy their daily needs. Organizational buying involves purchasing goods and services to produce another good with the intention of reselling it to final consumers to earn profits. The organizational buying is also known as business buying.
Difference between consumer buying and business buying can be summarized as follows:
Consumer markets contain of many small scale buyers where as business markets consist of few large buyers. As an example consumer market for clothing would be every individual who purchases their clothing needs at a small scale and business market for clothing would be retailers who purchase cloths from manufacturers for reselling at a large scale.
In a consumer market consumers demand for goods when they recognize their needs. As a result the demand for a good created in large scale. The demand for goods in business market is derived from the summation of the demand for goods in the consumer market. As an example the the business market demand for clothes (the quantity purchased by the clothing retailer) depends of the quantity demanded by the final consumer of clothing.
Demand for goods in consumer markets is heavily affected by the changes in the prices where it can be concluded that consumer market demand is price elastic. Demand for goods in business markets are not affected by the price changes in short run where it can be concluded that demand for goods in business market is price inelastic.
The purchasing behavior in the consumer market is highly personal and varies from person to person. The purchasing behavior in business market carries a lot of professional behavior where everyone would behave in a standardized manner.
Buying decisions of a consumer market is simple where it purely depends on the wish of consumer. But business buyers face complicated buying process where they have to adhere to purchasing standards and involves approval of many people.
Consumer buying is generally short term focused where they conclude the relationship with seller upon the transaction is completed. Business buying process focuses on long term where they build long lasting relationships with suppliers.
Consumers buy goods from retailers where business buyers usually buy goods straight away from the manufacturer.
Additionally, business markets practices reciprocity where they buy goods from a supplier and the same supplier again purchase goods from the them. In other words they buy and sell to same organization.
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Compare similarities and differences consumer buying and organizational customer buying?
The similarities between consumer buying and organizational customer buying is that both have the need to purchase. The difference lie in the quantity of purchases. Consumer buying entails retail, while organizational customer buying entails wholesale.
What influences organisational buying?
there are many reasons of organizational buyng,following are the major reasons of an organizational buying:Low costQualitycustomer preferencesconnivance
What are the factors influences organisational buying behaviour?
If your organization is a B to B organization, you must consider the factors that influence organizational buying decisions, when developing your marketing plans and sales strategies. To know more about these factors, keep reading.Organizational buying is much more complex than consumer buying, and thus deserves to be studied separately. The entwined interpersonal relationships and the multiple communication processes between the organizational members, involved in the buying decision process, are some of the major contributors to this complexity. The list of affecting factors isn't limited to these; there are many more important determinants. Let's take a look at what factors influence organizational buyers and their buying behavior. But before that we'd just like to divert your attention to why organizational buying is so different.Unique Features of Organizational BuyingOrganizational buying is mostly a multi-person activity, and that's true for more than 90% of the organizational buying. Decisions for some of the bigger purchases may have participants from a range of departments and from different management levels. Think about the purchase of new software - it may require a collective decision made by end users and people from the IT, finance and administration departments.When organizations make purchases there is always a meticulous formal process that precedes the actual purchasing.Organizational buying decisions are never made at the spur of a moment. The buying decision making is stretched and this drag can even be a year long, when it comes to critical purchases.
What has the author Rowland T Moriarty written?
Rowland T. . Moriarty has written: 'Organizational buying behavior'
Should I buy matching sets of patio furniture or mix and match individual pieces?
Buying a matching sets are cheaper then buying individual pieces.
What is difference between Consumer buying behavior Industrial buying behavior?
Difference between industrial and commercial buying
Differences between individual consumer behaviour and organisational buying behaviour?
Individual consumer buying behaviour has to do with all the processes undertaken by the various individual buyers in evaluating and making decisions towards purchasing a product for self- ocnsumption, family use or as a gift to other parties where as organisational buying behaviour has to do with the processes undertaken by a business in evaluatig and making decisions geared towards purchasing prodcuts or raw materials for further prodcution, to be sold to consumers for profit.
What is a gatekeeper in the buying center?
Gatekeeper --The individual responsible for the flow of information to the other members of the buying center
What has the author Michele D Bunn written?
Michele D. Bunn has written: 'Elements of situational risk in organizational buying' -- subject(s): Economics
Buying a 3D Television ?
Fortunately, buying a 3D television is not that difficult and should not take much time. An individual needs to ensure that they are buying the right setup for themselves though. It is not as simple as buying a random television. With that in mind, an individual should do their research and take some time to make a decision. There is no reason to rush into this purchase and wind up with the wrong thing.
What is the advantage of buying real estate which says Sale by owner?
There can be many advantages to purchasing real estate from an individual seller opposed to a real estate company. The biggest advantage to buying from an individual is the ability to talk them down on the price.
What are the risks of buying a cheap car for sale by an individual?
The risks for an individual buying a cheap car for sale are the the car may have mechanical problems, the car may have been in an accident at one time, and interior may be deteriorating. There are so many problems that you should check the car out completely before buying.
