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