Unit 2 Assignment - Differences between B2C and B2B B2C E-commerce process and B2B E-commerce process PDF

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Differences between B2C and B2B

B2C E-commerce process and B2B E-commerce process
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Introduction:

B2B and B2C are forms of commercial transactions. B2B stands for business-to-business which is the process for selling products and services to other businesses. B2C stands for business-toconsumer is the process for selling products directly to consumers. The business systems that support B2C and B2B transactions, communications and sales differ in complexity, cost, and scale.

In this presentation, I will be sharing some differences between B2C and B2B which I have classified under the purchasing process, payment and pricing process etcetera.

Differences between B2C and B2B:

Purchasing process: The differences in the purchasing process in B2C and B2B are that consumers buy products and services for personal use. Whereas business buyers purchase products and services for use in their companies, firm or organizations.

When it comes to B2B-buying, the purchasing process is complex. The group that is involved in decision making are technical group, financial and operational department, which all depends on the type of purchase.

The payment and pricing differences: Customers who buy products at B2C pay the same price as consumers. Whereas in B2B the price may differ by customers. Some customers who may agree in placing large orders and customers who will also negotiate on special terms may pay different prices to other customers.

During the B2C transactions, consumers select products and pay for them at the point of sales using credit or debit cards, cash or check. Whereas during the B2B transactions, the requirement is a more complex business system. Customers will not pay at the time of the order but will receive an invoice which they will settle within agreed payment terms.

B2C E-commerce process and B2B E-commerce process: B2C and B2B also differ in forms of electronic commerce. B2C e-commerce is the process of selling products directly to consumers from a website. Consumers have to browse for product

information pages on the website and then select products and pay for them before delivery. They make payments with either credit or debit card.

In B2B e-commerce one can still use a similar website-based business system. This form requires the seller to sell low-value products to business customers and take payment with orders. The B2B may have many systems of handling their business online which require the capability of accepting orders in different formats like email, electronic orders or documents.

Characteristics B2B:

1. B2B has more complex buying decisions 2. B2B focus on a long-term relationship 3. B2B has formalized buying process 4. B2B has professional purchasing effort 5. B2B involves more buyers 6. B2B has fluctuating demand 7. B2B has inelastic demand that is not affected as much by price changes 8. B2B contains fewer but larger buyers 9. B2B has derived demand.

Characteristics of B2C:

1. B2C has a short term relationship 2. B2C has a more informal buying process 3. B2C has simpler buying decisions 4. B2C has simpler purchasing effort 5. B2C has a single buyer 6. B2C has a more stable demand 7. B2C has more elastic demand 8. B2C has direct demand 9. B2C contains more but smaller buyers.

Fundamental Differences between B2B and B2C:

1. B2B is selling goods or services between two business entities whereas B2C is the process of transactions in which business sells goods or services to the consumer.

2. B2B seeks long term business relationships whereas B2C is only for short term depending on its end users. 3. B2B planning and logical are based on needs whereas B2C is based on emotion, want and desire. 4. The creation of brand value in B2B is based on trust and mutual relationship whereas B2C is based on advertising and promotion. Similarities of B2B and B2C:

1. Both in B2B and B2C you need to build trust to be able to make sales. 2. B2B and B2C need marketing to reach buyers. 3. You also leave customers with the option to contact you later. 4. The marketing of B2B and B2C works hand-in-hand with sales.

How have electronic tools changed the relationship for better? The internet is becoming the platform for day to day commercial activities and business transactions. The internet has been playing a major role in e-commerce in today’s business world. Through the use of internet a seller can place any product or services online where the buyer can easily access the details of the product or services. A purchase can as well be made online without delay. Electronic mail and the internet have made communication and data exchange faster in today’s business world, facilitating the flow of information between suppliers, customers within the supply chain (Helms, Marilyn, 2008).

References: Linton, I. (2019). Differences Between B2C & B2B in Business Systems. Retrieved from https://smallbusiness.chron.com/differences-between-b2c-b2b-business-systems-39922.html Claessens, M. (2015). Principles of marketing. Retrieved from https://marketing-insider.eu/b2bmarket-characteristics/ Surbhi, S. (2019). Difference Between B2B and B2C. Retrieved from https://keydifferences.com/difference-between-b2b-and-b2c.html Axel, K. (2019). B2B vs. B2C Marketing: The Similarities and Differences. Retrieved from https://learn.g2.com/b2b-vs-b2c

Kutz, M. (2016). Introduction to Electronic Commerce: Combining Business and Information Technology. Retrieved from https://my.uopeople.edu/pluginfile.php/588815/mod_page/content/39/introduction-toe-commerce%20-%20business%20and%20strategy.pdf...