Difference between business markets and consumer markets

There are many difference between business markets and consumer markets.Some of the differences are-

Difference between business markets and consumer markets due To The Nature Of Purchases

A. Organizational consumers purchase capital equipment, raw materials, semifinished goods, and other products for use in further production or operations or for resale to others, whereas final consumers usually acquire the finished items for personal, family, or household use.
B. Organizational consumers are likely to require exact product specifications. Final consumers more often buy on the basis of description, style, and color.
C. Organizational consumers often use multiple-buying responsibility, in which two or more employees formally participate in complex or expensive purchase decisions. Final consumers employ it less frequently and less formally.

Difference between business markets and consumer markets on the basis of demand

A. Derived demand occurs for organizational consumers because the quantity of items they purchase is often based on the anticipated demand of their final consumers for specific finished goods and services; therefore, organizational consumers are less sensitive to price changes. As long as final consumers are willing to pay higher prices, organizational consumers will not object to price increases.

B. Demand is volatile due to the accelerator principle, whereby final consumer demand affects many levels of organizational consumers.

C. There are fewer organizational consumers than final consumers.

D. Business market consumers tend to be geographically concentrated.

E. Buying specialists are often used.

F. Distribution channels are shorter.

Differences of business markets and consumer markets based On A Global Perspective

A. As with final consumers, there are many distinctions among organizational consumers around the world and sellers must understand and respond to them.

B. Companies doing business in foreign markets must know how to deal with organizational consumers in those markets.

C. Nations’ cultures have a large impact on the way their organizational consumers negotiate and reach decisions.