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Written Assignment 2
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School of Business, University of the People
BUS 2202: E-Commerce
Instructor: Michelle Schwarz
Date: 11/28/2023
B2C vs B2B
Do some research to examine the differences between the business-to-business (B2B) and the Business-to-Customer (B2C) business models. What are their primary characteristics? How do they fundamentally differ? Are there any similarities that are of note? How e-
commerce has affected the relationships for better and worse?
The primary modes of commercial transactions are the business-to-business (B2B) and business-to-customers (B2C) models. B2B pertains to the supply chain, commonly known as the value-added chain, wherein a company sells industrial products to another enterprise that may refine or manufacture raw materials (adding value) before
selling them again either to another corporation or directly to end-users. Therefore, while both models share a commonality in that they involve businesses as vendors, they differ significantly in various aspects.
- The target audience for B2B typically consists of a group of individuals representing different stakeholders such as professionals, procurement managers or even government agencies; whereas in B2C the audience is usually just one person - the end-user.
- Product complexity holds more weight for B2B items where detailed specifications or advanced technical knowledge may be required; whereas for B2C it generally represents an off-the-shelf item already assembled and ready to use.
- The sales cycle in B2B is typically long-term and objective-oriented, whilst transactions
within the B2C model are short-term and impulsive purchases often limited to one-
time deals. According to Databox's survey (Big Commerce, n.d.), "the largest proportion
of B2B sales (30%) take between 1-3 months to close."
- Market size comparison indicates that although there are fewer transactions in B2B when compared with those made through the medium of B2C, the quantity sold under former type exceeds that under the latter one by far.
- Customer experience plays a vital role in both cases but differs slightly regarding buyer focus. In the case of buyers involved with buying from a business-to-business model, their main emphasis lies on facts like clear pricing information, technical support availability, and delivery time frames. On the other hand, customers buying from businesses catering towards consumers' needs tend to focus more on fulfilling immediate requirements instead. "It is commonly misconstrued that companies sell
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