Question

How do business-to-business markets differ from consumer markets? Select the option that does not align with these differences:

A) Involvement of fewer buyers
B) Formal buying process
C) Larger purchase volumes
D) Geographical constraints

Answer 1

The correct answer is D) Geographical constraints.

Step-by-step explanation:

Business-to-business (B2B) markets differ from consumer markets in several ways:

1. Involvement of fewer buyers: In B2B markets, there are generally fewer buyers compared to consumer markets. This is because businesses often have specific needs and requirements for their products or services, which limits the number of potential buyers.
2. Formal buying process: In B2B markets, the buying process is more formal and complex compared to consumer markets. Business buyers typically follow a formal procurement process that involves multiple stakeholders, detailed negotiations, and contracts.
3. Larger purchase volumes: B2B markets involve larger purchase volumes compared to consumer markets. Businesses often buy products or services in bulk quantities to meet their needs and to achieve economies of scale.

Out of the given options, the one that does not align with these differences is

1. Geographical constraints: Both B2B and consumer markets can be affected by geographical constraints. For example, limitations in transportation infrastructure can affect the availability and delivery of goods, regardless of whether it is a B2B or consumer market.