Consumer Behaviour in B2B and B2C Channels — 5 Key Differentiators

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The behaviour of consumers in B2B and B2C sales channels is starkly different from one another. Let’s take an example to illustrate and drive home this point, for both cases.

For the sake of this example, we’ll assume that you as a consumer are out to buy a hand sanitiser and this would be compared with a pharmaceutical company that is exploring a purchase of the same brand’s sanitiser. Now, we’ll look at the points of difference and how each channel is different in their own way.

Where to buy

A consumer in a B2C channel will purchase a hand sanitiser from a local medical shop or a departmental store. His/Her quantity is limited to a few pieces and hence, buying directly from the company does not make sense.

On the other hand, the requirements would be massive for a large pharmaceutical company, with hundreds of branch offices, channel partners, doctors and hospitals working with it. The quantity could easily run into thousands.

It is therefore, not possible for small retailers or even departmental stores to meet the demand. So, this requirement is met by the manufacturer or seller’s sales team.

Price

For an individual consumer, who is buying a single piece, bargaining for the price would not make sense. So, he/she invariably pays the price mentioned at the back of the bottle as MRP.

A B2B market would function differently. As the company in this case is looking for a bulk order from the manufacturer, they would bargain and negotiate for a much lower price than the MRP per piece.

Selection Criteria

For a customer, there could be just three questions which he/she would seek to answer before putting the product in the cart—

1. Does it clean my hands ?
2. Does it smell good ?
3. Is it within my budget ?

For a company, the criteria could be much more different. The questions here could seem like-

1. What is the percentage of alcohol in the hand sanitiser ? Is it below the minimum threshold set for medical use ?
2. What is the hand sanitiser composed of, in terms of chemicals ?
3. Does it have a strong fragrance or a mild fragrance ?
4. Is the product approved for sale by local/state/national authorities ?
5. What are the certifications available with the manufacturer to prove quality and standard of the product on offer ?
6. In what situations can the item be used ?
7. What is the output of liquid for every tap on the lid (should not be too less or too much) ?
8. How tight is the lid ?
9. Is the sanitising liquid too sticky ?

Decision Making Process

The decision making process is shorter and faster in a B2C scenario as there is just one customer, with a comparatively low involvement product (from a consumer point of view).

For a large firm, decision-making involves various departments, including but not limited to purchase, audit, finance, logistics, sourcing, marketing and sales. As more and more people are involved, the process is longer and takes time.

Add to it the fact that big money is involved, and you have another reason to not rush to a decision.

In B2B purchases, every product is high-involvement, as the stakes involved are high too!

The Trigger

For a consumer, the trigger which makes him/her want a particular brand’s product could well be dictated by advertising on offline and online channels, as well as celebrity endorsements.

For organisations, the trigger is utility — if the product does not solve a problem, no point spending millions on it. Also, the terms of payment, price, quality, certifications, regulations and business relations play a role.

For B2B clients, it is a given that decision making will be rational. So, brand marketers have to create content that shows a benefit in their context.

To Sum Up

There are certainly major differences in behaviour of consumers in B2B and B2C channels. It is important to understand the differences and frame a strategy that takes into account these complexities, to deliver what each of your customer expects.