JAN | 2016
There are two different kinds of Business such as Business-to-Business or B2B and Business-to-Consumer or B2C. Taking the case of business to business it mainly refers to the case where you can make transaction commercially with others. This can occur in three cases. First is when the business becomes the sourcing material for their production. Second case is that when the business needs services of others for operational reasons. And the third one is the reselling of goods and services produced by others. Here the contrasting terms are business to government and business to consumer.
For a B2B transaction the overall volume is greater or higher than that of B2C transactions. The main reason is that for a typical supply chain there are many B2B transactions that involve raw materials or sub components and for B2C there will be only one B2C transaction that make sale of complete finished product to the end user or the customer.
Below the differences between organizations and consumers as customers are given.
In case of B2C buyer is an individual where as in B2B usually there will be a group of people in an organization and each one will have their own views and attitudes.
Here in the B2B process discussions made in the decision making and the technical process details have to be done in depth. So it is clear that the B2B process is much longer than B2C.
In B2B the products are bought by a committee of buyers who are versed with specifications and levels. In most of the cases these purchases are driven by specification.