Week 5 BOC

People often overlook the importance of the business buyer market in today’s society. “Did you know that GE’s consumer products contribute less than one-third of the company’s total $183 billion in annual sales? To the surprise of many, most of GE’s business comes not from final consumers but from commercial and industrial customers across a wide range of industries.” (Armstrong/Kotler Marketing: An Introduction ) Many people would be surprised to find this out. The business buyer market is so critical because these businesses need large quantities of goods and buy a good amount in bulk, whereas an everyday person only buys one or two units. You also have the perks of what is known as straight rebuy, which is the routine reordering of a product. This can create business bonds that can last for many lifetimes and in today’s market, loyalty is very crucial. Consumer buyer loyalty is also very relevant and important but the impact on the business buyer market is much greater. Business buyers are also subject to a vast amount of influences in their buying. These influences are mostly economic. Business buyers are more likely to go after the lowest price whereas consumers are quicker to stick to certain brands.  Consumers buy on more of a personal level. “Thus, IKEA does more than just buy from suppliers; it also involves them deeply in the process of designing and making stylish but affordable products to keep IKEA’s customers coming back.” (Armstrong/Kotler Marketing: An Introduction ) The quote above supports the fact that business buying is affected by multiple influences and shows the importance of loyalty at the business buying level.