Differences Between B2 B And B2 C Essay

900 words - 4 pages

Differences between B2B and B2C

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 cases, B2B involve the sale of raw materials that are to be processed into final products. Businesses engage in value adding activities, and this is why most of the products bought by businesses have to be processed into final products. On the other hand, B2C activities involve the sale of finished products. Customers buy products for final consumption and they have no intention of adding value to the purchased products (Bussler, 2003).
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...

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