Question

Discuss the differences between the Business Buying Decision Process and business buyer behavior and the Consumer Buying Decision Process and consumer buyer behavior.

Answer 1

PLEASE RATE POSITIVE IF YOU LIKE MY ANSWER TO PROTECT MY EMPLOYMENT

The Buying Decision Process

The consumer buying process consists of five stages: need recognition, information search, evaluation of alternatives, purchase decision and post-purchase outcomes. Needs are generated by marketing campaigns, information from different sources are searched post a need is realized. Alternative products are evaluated based on information such brand name, features, quality and price. Post the purchase is made, consumer may feel delighted, satisfied or dissatisfied.

The business buying process on the other hand has the following steps - need recognition, development of product specification, preparation of RFX, selection of supplier, issuance of the purchase order and monitoring of supplier/product quality. A need is recognized due to business decision or challenges. Next detailed product specifications are developed to articulate the exact requirement. The company then prepares a request for a proposal/quotation to solicit of interest or bids from potential suppliers. One of the supplier is selected based on criteria as applicable - cost/ quality etc. and purchase order is issued. Post the purchase the businesses actively monitor the quality of the products supplied and take further purchasing decisions.

Buying Behavior

The consumers consist of thousands of individual buyers located across different geographies. While their needs are usually same for a particular product, their buying habits vary a lot. For example, everyone uses washing machines to wash clothes. But some buy based on brand preference, some buy based on features and some others may buy based on price. The business market consists of a few large buyers. They are often concentrated in specific geographic markets and hence easier to cater to. However, they are highly informed buyers with major focus on ROI. The relationships between businesses and suppliers are generally long-term.