Differences between B2B and B2C

800 WordsApr 23, 20194 Pages
Differences between B2B and B2C Name Institution Differences between B2B and B2C Business to business and business to customers is two important different terms that one needs to understand. The two terms mean different things in the business environment. The aim of this research paper is to evaluate the differences between business to business and business to customers. Transactions in the case of business to business involve two business organizations while business to customer involves transactions between an organization and the final customers. An example of business to business activity is the communication between employees of different organizations. Businesses communicate with each other to facilitate important…show more content…
In terms of risks, B2B activities are much riskier as compared to B2C activities. In the first place, B2B activities involve a huge investment of cash such that in case of a loss, the effect would be great. On the other hand, B2C activities are less risky. The cash invested is low, and one would not suffer a lot in case what is bought is not of the right taste, quality or quantity. The cash that would be lost in such transaction would be very low. This is why B2B is riskier than B2C. The buying behavior in B2B is different from buying behavior in the case of B2C. In the case of B2B, the decision process is long and takes a lot of time. This is considering that consultations have to be made in the decision making process to ensure that the right products are bought. The B2B business transactions tend to create business loyalty since there is no time to keep on changing decisions. On the other hand, B2C involves simple decisions that do not need consultations since they affect individuals. The buying behavior does not cause customer loyalty since changing tastes can make one make a different choice in the next period of buying. In the case of B2B businesses, there will always be a need for differentiation. The reason is that purchases in the case of B2B are done by committees. Members of these committees have good knowledge about what they are to buy. They will choose the
Open Document