Buying characteristics of business users:
The buying characteristics of the industrial users markets, buyer-seller relationships in business marketers, and the total buying behaviour are different.
Direct purchase occurs when the business user buys products from the producer. This happens if there are large orders that make it necessary for the purchaser to need technical assistance. Direct sale in the business market is convenient for the seller because there are relatively few potential buyers. The buyers are big and geographically concentrated.
The nature of the relationship in the business market is unique. The business marketers consider the roles of producers, manufacturers, suppliers, distributors and end users. The marketers see how each of the participants adds value to the final products.
Emphasis and efforts are made on building and maintaining relationships with all parties. They (the parties) are actually responsible for successfully bringing the products to the business markets.
Frequency of purchase is another characteristic different from the pattern in consumer purchase. Certain products are bought in frequently. Examples include (a) large installations (b) small parts and materials used in the product manufacture and (c) standard operating supplies (e.g. cleaning items).
Personal selling programmes of business sellers will have to call on their potential customers as often as possible to keep track of company's products. The seller will know when the customer wants to make the next purchase.
Size of order is considerably larger in the business purchase than it is in the consumer market. Hence each sale in the business market is important for the seller because it is unique.
Time for negotiations tend to be longer than in the consumer transaction. The reasons for extended negotiations are many eg.
many executives are involved in the buying decision
one single sale involves a large amount of money
the product is made specifically as ordered by the business customer. Hence considerable discussion is necessary for establishing the specifications.
Reciprocity arrangements used to be common among firms selling homogenous and basic products such as oil, steel, rubber, paper products and chemicals. The arrangements here is: "I will buy from you if you will buy from me." Reciprocity has some drawbacks. For example, (I) the price and quality of the product offered by seller may not be competitive and (ii) the morale of the sales force and the purchasing personnel may suffer if their company fails to pursue the profit maximisation objectives. In some countries reciprocity is illegal (eg in the USA).
Excellent service counts very much as a business buying motive and it determines the business buying patterns. The industrial users demand it. In many cases a firm's main differentiating feature is its service. This happens if the product is standardised and can be purchased from a number of competing companies. The sellers will be ready to offer excellent service before and after sale. The firm must serve its business-to-business customers.
Dependability is important because the industrial user wants (a) and adequate quantity, (b) uniformity and (c) good quality products. Variation in quality of materials for finished products can harm manufacturing process. This can happen if the imperfections exceed the allowed quality limits. Costly disruptions in the production process will follow and this will obviously lower overall productivity. Adequate quantity is equally important because work stoppage caused by insufficient supply of materials is costly and detrimental to the producer because the sellers may fail to deliver the products on schedules.
Companies put emphasis on total quality management (TQM) in order to show how important dependability is to their manufacturing processes.