B2B Buying Behavior Essay

1399 Words Feb 3rd, 2011 6 Pages
Factors affecting consumer behavior in B2B markets in India

B2B buying behavior is influenced by a selection of variables. These variables are divided into four fundamental classes:

1. Environmental 2. Organizational 3. Interpersonal 4. Individual

Table below illustrates this classification and exemplifies variables being used. The variables are also grouped in task and nontask variables that apply to all other classes. The task variables are directly related to the buying problem, and the nontask variables are broaden beyond the specific buying problem. To separate variables into task and nontask are not always obvious, so the one being predominant ought to be chosen in many cases.

Table: Variables influencing
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Such companies tend to be large, operate on relatively high margins, and regard the product or service in question as strategically important.
The fact that business-to-business markets have relatively few segments makes the job of the B2B marketer easier than it might otherwise be. Nevertheless, skills in recognizing which customers fit which segments, and how to appeal to each of these segments, are not easy to come by. Key challenges in establishing a behavioral or needs-based segmentation are as follows: • Obtaining a consensus on exactly what the segments are, and what characterizes them, usually requires investment in quantitative market research. • Once segmentation has been achieved, identifying which companies are in which segment is extremely difficult. Behavioral and needs-based segments usually transcend ‘firmographic’ segments, meaning that there are often no immediately manifest indicators (such as country, industry sector) of the segment to which a company belongs. • Training sales teams, marketing teams, customer relationship and other departments must implement the segmentation by adjusting their approach to often intangible criteria. This requires huge effort and investment horizontally and vertically within an organization.
Given the limited size of business-to-business target audiences, many marketers find the most simple approach is to tier the target audience by size and split it

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