How do business markets differ from consumer markets?
What will be an ideal response?
Markets fall into one of two categories: consumer markets and business markets. These categories are based on the characteristics of the individuals and groups that make up a specific market and the purposes for which they buy products. A consumer market consists of purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make a profit. Consumer markets are sometimes also referred to as business-to-consumer (B2C) markets. Each of us belongs to numerous consumer markets for all the purchases we make in categories such as housing, food, clothing, vehicles, personal services, appliances, furniture, recreational equipment, and so on. A business market consists of individuals or groups that purchase a specific kind of product for one of three purposes: resale, direct use in producing other products, or use in general daily operations. For instance, a producer that buys electrical wire to use in the production of lamps is part of a business market for electrical wire. Some products can be part of the business or consumer market, depending on their end use. For instance, if you purchase a chair for your home, that chair is part of the consumer market. However, if an office manager purchases the same chair for use in a business office, it is part of the business market. Business markets may be called business-to-business (B2B), industrial, or organizational markets and can be subclassified into producer, reseller, government, and institutional markets.
You might also like to view...
When preparing the budgeted balance sheet of a merchandising company, the amount of Merchandise Inventory can be obtained from the ________.
A) merchandise inventory account B) inventory, purchases, and cost of goods sold budget C) production budget D) capital expenditure budget and cash budget
You are trying to do a reference check for a potential new hire, but when you contact the candidate’s most recent supervisor by phone, he will only offer the candidate’s dates of employment with that company. What should you do?
a. Thank the manager and end the phone call. b. Ask if the manager would be willing to do an in-person interview. c. Quickly ask the manager if he would hire that candidate again. d. Quickly ask the manager if the candidate was ever disciplined in a serious way.
What are the qualifications on a government's power to make laws?
A) The laws must be in accordance with the principles of the Charter of Rights and Freedoms. B) The laws must be confirmed by the Supreme Court of Canada. C) The government must be entitled to pass the legislation under the division of powers section of the Constitution. D) Both A and B E) Both A and C
In the consumer buying decision process, the information search stage
A. yields a group of brands that a buyer views as possible alternatives. B. involves a buyer becoming aware of the need for a product. C. is not necessary when the buyer is involved in extensive decision making. D. occurs immediately after evaluation of alternatives. E. is lengthy for routine response buying behavior.