Both final consumers and organizational buyers purchase goods and
services, but differences exist in how they approach the buying
decision. Although both are price-sensitive to a degree,
organizational buyers are typically more cost sensitive. In fact,
many organizational buyers are incentivized based on how much money
they can save the company.
An additional difference arises because consumers actually use the
goods and services purchased, whereas organizational buyers generally
do not personally use what they are going to purchase. As a result,
an organizational buyer's understanding of what is to be purchased is
generally related to a specification. As long as the item under
consideration meets the specification and the desired cost, then it
will be purchased.
A consumer will approach a purchase differently. A detailed
specification will rarely be used. A variety of qualitative factors
play a much more important role. Fashion, for example, is frequently
a consideration for a consumer, whereas an organizational buyer is
rarely going to be interested in that aspect of a purchase.
Organizational buyers are also much more likely to be purchasing
commodities. Brands are much less likely to be significant because of
this. In contrast, brands can be very important to consumers, and
products tend to be positioned as being differentiated, even when they
are essentially commodities (like gasoline).
Organizational buyers are also typically not looking for instant
gratification, whereby they decide to buy something and immediately go
out and purchase the item. Impulse purchasing is also much less of a
factor. Organizational buyers rarely go to a store to purchase
anything, and usually are not involved in the receipt of delivery. In
contrast, consumers typically go to a store and expect to purchase and
immediately receive the desired item. Many consumers are very
responsive to impulse purchasing opportunities.
Sincerely,
Wonko |
