Question

What are the main characteristics of organizational markets

described in the lecture? How do organizational buying processes
differ from that of consumer processes, and in what ways are they
similar?

Answer 1

Organizational markets have distinct characteristics such as higher purchasing volumes and complex buying processes. However, they also share similarities with consumer markets, such as the decision-making process and consideration of factors like price and quality.

Step-by-step explanation:

Organizational markets have specific characteristics that differentiate them from consumer markets. Some of the main characteristics of organizational markets include:

• Higher purchasing volumes: Organizational buyers typically make larger purchases compared to individual consumers.
• Complex buying processes: Organizational buying processes involve multiple decision makers, formal procedures, and extensive evaluation of suppliers and products.
• Long-term relationships: Organizational buyers often seek to establish long-term relationships with suppliers based on trust and reliability.
• Focus on value and performance: Organizational buyers prioritize value for money and product performance over personal preferences.
• Professional buying behavior: Organizational buyers make purchasing decisions based on objective criteria and professional expertise.

Although organizational buying processes have distinct characteristics, they also share similarities with consumer buying processes. Both involve the decision-making process, evaluation of alternatives, and consideration of factors such as price, quality, and customer service.