Question

1. Discuss why the decision-making process for an individual does not stay constant.
2. Discuss the role of relationship marketing and strategic alliances in business marketing. What implications do business relationships have on the supply chain? What benefits do the members of the supply chain provide?
3. Explain the major differences between business and consumer markets. Discuss the unique aspects of business buying behavior.

Answer 1

1.

There are many reasons that make decision making process by the individuals, not getting constant. The first reason is the addition of behavioral economics or aspects in the decision making process that brings emotions, views of other known people and subjectivity. It makes the decision making process to deviate from the logical thinking and become inconsistent. The second reason is the type of purchase. If a purchase takes place at a certain time interval, then new models come and decision making process changes with new inputs. Though, it does not happen when there are regular buying of goods on daily basis. Further, the third reason is the change of needs or demand that makes decision making process to get modified as well to make it more suitable for the new demand. The set of new information and availability of time to make decision also bring change in decision making process.

3.

Business market represent smaller and specialized market, whereas consumer market is large, but representing a generalized market with end needs of the consumers. Business market works on derived demand, but consumer market is based on end consumption. Further, in the business market, one business customer brings higher value than the one consumer of consumer market. To be successful in the business market, it is important to get specialized knowledge of the product with customization, while to be successful in consumer market, it is important to offer customization according to the customers' need.

Business buying behavior demands personalized selling that accurately fits the demand of their own organization. It demands product specialization along with the customization. Further, business buying behavior is based on derived demand. If the demand of end product increases, then demand of intermediate product increases as well. Further, business buyers are the expert buyers and there is no scope of behavioral aspect in their decision making process.

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