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The B2B buying process—the journey B2B buyers and the buying center take to complete a purchase—is significantly different and more complex than the consumer purchasing decision process. You’ll recall that the consumer buying decision encompasses five stages:
Let’s take a closer look at each of these stages.
Similar to the consumer purchasing decision process, the first stage in the B2B buying decision process is problem recognition, which begins when someone within the organization identifies a problem or a need that can be resolved through a purchase. Straight rebuys are purchases in which the business customer buys the same goods from the same supplier in the same quantity at the same terms and requires minimal decision-making. For straight rebuy purchases, this stage may be as simple as the fact that the organization is running low on copier paper or toner. In a case like this, the B2B buyer simply places the order, and the process ends.
A modified rebuy is a buying situation in which an individual or organization buys goods that have been purchased previously but changes either the supplier or some element of the previous order. Modified rebuy purchases make the process more complex, as these may involve replacing outdated equipment, technological changes, or revising marketing brochures or advertisements. Now, instead of placing an order from an existing supplier for an already-purchased product, the B2B buyer has to follow through on more of the stages in the process.
A new-task buy is a complex B2B buying situation in which the organization buys a product or service for the first time. New-task buying is the most complex. For example, your organization may decide that, due to the growth of the organization, it needs to purchase an accounting software system or a new piece of manufacturing equipment. In these cases, the B2B buying process will likely incorporate all of the steps listed in the figure above.
Next, the buying center will need to further define what needs to be purchased in a need description. This often involves collaboration among members of the buying center in terms of describing what is needed from a technical perspective, desired features, quantity, etc.
IN CONTEXT
Consider a firm that is developing a new electronic control for an appliance. The components are many—a printed circuit board, capacitors, resistors, microprocessors, etc. Members of the buying center will be called upon to develop a bill of materials—a list of parts, items, assemblies, subassemblies, documents, drawings, and other materials required to create the control. Think of the bill of materials as the “recipe” used to create the finished product.
B2B buyers often develop product specifications, a blueprint that outlines the product to be built, how it will look, what features it will have, and how it will function. The product specification needs to be concise and readable for everyone in the buying center and yet contain sufficient technical data to provide the product team with the information it needs to develop the new product or feature.
Now that you’ve established the technical specifications for the product, it’s time to identify potential suppliers in a supplier search. This is where the experience of those in the buying center comes into play, as they attempt to determine which suppliers have the best quality, delivery, and price.
IN CONTEXT
Just like consumers in the “information search” stage of the consumer buying process, those in the buying center may look online to find suppliers, but there are many other resources available to B2B buyers, such as trade magazines, industry expert blogs, and webinars conducted by suppliers.
Once the list of potential vendors has been developed and whittled down, qualified vendors will be asked to submit proposals during the proposal solicitation process. If it’s a relatively straightforward purchase, this proposal may be as easy as a vendor sending the buyer a catalog or providing the buyer with a link to the company’s website. However, more complex purchases typically require the vendor to submit a detailed proposal outlining what the vendor can do to address the company’s needs. This proposal will likely contain product specifications, timing, and—of course—pricing.
After reviewing the proposals from the various vendors, the buying center makes a choice during supplier selection. This stage in the B2B buying process involves a thorough review of the proposals submitted, with a critical eye tuned to factors such as supplier capabilities, reputation, warranties, price, etc.
After selecting suppliers, the B2B buyer negotiates the details of the order in order-routine specification. The critical items here are what is needed (i.e., the technical specifications), how much is needed (i.e., the quantity required), and when it is needed (i.e., the expected time of delivery). This stage will likely also include negotiation of things such as return policies, warranties, and other critical items involved with the purchase.
Just as consumers evaluate purchases after they have made them, and similar to the way that your employer may conduct a performance review to assess your job performance, the B2B buyer periodically reviews the performance of the selected supplier to assess if the product and the supplier meet expectations.
EXAMPLE
The B2B buyer may solicit product feedback from users and/or rate the supplier on different criteria such as quality, promptness of delivery, etc. As a result of the performance review, the B2B buyer may decide to continue, modify, or even end a supplier relationship.As we’ve seen above, there are several differences between B2C and B2B marketing. Consider purchasing, for example. Unlike B2C transactions, it is far more common in B2B transactions for vendors to offer “perks” such as free dinners, golf outings, and trips. In some foreign countries, B2B and government buyers not only expect these types of “perks” but also may demand bribes if you want to do business with them on their turf. This presents unique ethical challenges for B2B sellers and buyers. As a B2B seller, of course you want to make the sale, particularly if it’s a large sale. On the other hand, you know that a reputation for ethical behavior, including honesty, transparency, and open communication, is critical to the success of your business and may even be the decisive factor in a B2B buyer’s decision to buy from you instead of a competitor.
Transparency International, a watchdog group, annually ranks companies from the world’s industrialized countries based on their likelihood to act in dishonest or fraudulent ways, including engaging in bribery, which is referred to as corruption (when a company or its representatives act in dishonest or fraudulent ways, such as when they engage in bribery abroad). The index ranks 180 countries and territories by their perceived levels of public sector corruption on a scale of 1 to 100, in which 100 is perceived to be very clean and 0 is perceived to be highly corrupt. The image below shows countries around the world with their scores; the darker the color, the higher the level of corruption.
Price fixing—an agreement among competitors (either written, verbal, or inferred from the parties’ conduct) that affects prices or competitive terms—is prohibited by the U.S. Federal Trade Commission (FTC). Keep in mind that, despite the term, price fixing isn’t confined to an agreement to set the same price. Companies can also be involved in price fixing if they offer or withhold the same discounts or shipping terms or set a production amount or quota. Price fixing is illegal because it’s considered anticompetitive and hurts both consumers and businesses.
Source: THIS TUTORIAL HAS BEEN ADAPTED FROM OPEN STAX’S PRINCIPLES OF MARKETING COURSE. ACCESS FOR FREE AT https://openstax.org/details/books/principles-marketing. LICENSE: CREATIVE COMMONS ATTRIBUTION 4.0 INTERNATIONAL.
REFERENCES
Transparency International. (2023). Corruption Perceptions Index. Retrieved from www.transparency.org/en/cpi/2022
