Differences between B2B and B2C

Differences between B2B and B2C

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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 decision making activities. On the other hand, business to customer communication involves dealing with final customers where marketing activities are done, and response from customers is obtained by a business (Barschel, 2007).

Transactions in business to business are usually in huge quantities and involve huge cash expenditure. Businesses usually buy in large quantities to sell to many customers. Businesses also buy raw materials in large quantities to finish the raw materials into final products and sell them in large quantities. On the other hand, business to customer involves transactions related to the sale of one product and this involves less capital expenditure (Barschel, 2007). Most of the customers do not buy in large quantities. No customer will buy two vehicles since this would be expensive. Even though business to business transaction may be for final consumption, the quantity dealt with is usually large because the number of users in the organization is usually high.

In most of the...

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...the business environment. B2B involves activities between two organizations that may be producers, wholesalers and retailers. The products are not sold to final consumers. The activities in B2B involve more serious evaluations to ensure that the best decision is made. Experts are involved in the process. On the other hand, B2C involves one individual making a decision whether informed or not. The advantage is that B2C is less risky as compared to B2B. Marketing activities have proved to benefit the B2B activities as opposed to B2C where decisions are made based on emotions created on an individual.

References

Barschel, H. (2007). B2B versus B2C Marketing - Major Differences Along the Supply Chain of Fast Moving Consumer Goods (FMCG). München: GRIN Verlag GmbH.

Bussler, C. (2003). B2B integration: Concepts and architecture : with 4 tables. Berlin [u.a.: Springer.