HR Management Assignment help on : Businesses purchase and Complete business transactions
Give an overview of the basic differences between how consumers purchase and complete business transactions, and how businesses purchase and complete business transactions?
Ans1. Consumers buy the products & services based upon the benefits attached along the same. It has been seen that, most of the good & services bought by the consumers are those elements which would benefit them and their families in long run. Whereas on the other hand, business or the enterprises buy those products which would be used by the manufactures to manufacture the product (Anderson, 2012). The goods bought by the organization shall be such which would help them to support its operations. The main motive of buying such products is to earn high levels of profit. The consumer purchase transaction takes into consideration the following four steps i.e. recognition of the problem, search for the relevant information, evaluation of the alternatives, decision making & post purchase decision making. The business purchase transaction takes into consideration quality commitment, leader’s information, goal congruence, conflict information & SWOT Analysis.
The main difference within the buying needs refers to the goals which would be established while taking up the purchase decision transactions amongst the consumers and the business houses.
Þ Features
The first basis upon which the consumer purchase & business purchase can be distinguished refers to the features of products attached to it. The two main features of a business purchase decision transaction refer to decision making & elasticity of demand. Whereas on the other hand, the characteristics of the consumer purchase decision transactions solely depends upon the needs of the same. Business purchase shall keep in mind the needs of the various people involved within the enterprise such as banking professionals, sales personnel, accountants, marketing people, etc (Anderson, 2012).
The demand for the consumer products is highly elastic in nature. It shall be kept in mind that, people tend to buy more products when it is cheap. But, in case of business enterprises the demand of the products are inelastic in nature. This means that, the business organizations would be required to purchase the products irrespective of the price attached to it.
Þ Types
The second basis upon which consumer purchase & business purchase can be distinguished refers to the type of product. The consumer purchase business transactions can be divided upon household items. There are three types of products under the business purchase transactions which shall be taken into consideration i.e. resellers, producers who would buy goods & services and government, non-profit organizations.
Þ Size
The consumer purchase transaction would be referred to as a larger place wherein exchange of goods & services will be taken into consideration. The consumer purchase transaction has been estimated to be 100 million approximately. The business purchase transactions consist of a limited target audience or customers which would order the products or services in bulk quantities (Anderson, 2012).
Þ Time Frame
It shall be seen that, the consumers’ business transactions are bought at a higher pace. Whereas on the other hand, business houses will buy or purchase industrial commodities which requires high levels of evaluation from the alternatives. It has been seen that, business houses & organizations requires high levels of time to select the products (MRS Evidence Matters, 2005).
Þ Considerations
The major consideration while buying a consumer related brand or a product would be to buy the product from one brand or a brand towards which the consumer is loyal towards too. Whereas on the hand, business purchase transactions take into consideration three main aspects such as reliability in terms of quality, quantity, specialized products and goal congruence. Price is a major consideration for both consumer as well as business houses (Anderson, 2012).
Task 2 – 20 Marks
Many sales are lost in business to business sales due to not understanding the complexity of the business DMU. This may be one of the elements missing at ‘Window World’. Explain and detail the importance of the business to business DMU in achieving a sale.
Ans2. Business to Business marketing refers to the type of marketing which is practiced between two or more business enterprises. Business to business marketing refers to the type of marketing which would help to meet the needs of the business houses. The products exchanged within the B2B marketing will help to drive the consumers to buy the products. Some of the reasons which would make the business to business markets special as compared to the consumer market have been described as follows.
Þ Personal Relationships Are More Important In B2B Markets: One of the most attractive features which are being seen with business to business markets refers to the personal relationship framed between the two business markets. It shall be kept in mind that, while communicating with a small supplier is comparatively easy to deal with. Personal relationships shall be made purely on the basis of trust & honesty (Anderson, 2012). It shall be seen that, building good terms with business to business suppliers will help the customers to act loyal & committed towards work in the best possible manner. At “Window World”, personal relationships shall be taken into consideration. This would provide the sales personnel as well as the local suppliers to portray little levels of trust over the same while buying a particular product.
Þ B2B Products Are Often More Complex: While dealing in the B2B markets, the decision making units (DMU) would be considered quite complex nature. It shall be kept in mind; less expertise is required while buying a consumer product whereas on the other hand, purchasing an industrial product refers high levels of expertise. Consumer products are standardized whereas on the other hand, industrial products require high levels of tuning (MRS Evidence Matters, 2005).
Þ Limited number of buying units: Within the various B2B markets, customer distribution shall be taken into consideration with the help of a Pareto Principle i.e. the 80:20 rule. The consumer purchase transaction would be referred to as a larger place wherein exchange of goods & services will be taken into consideration. The consumer purchase transaction has been estimated to be 100 million approximately. The business purchase transactions consist of a limited target audience or customers which would order the products or services in bulk quantities (Anderson, 2012).
Task 3 – 20 Marks
Using a table to highlight you answers, identify the differences between the consumer DMP and the Business DMP.
Ans3.
|
Consumer Decision Making Process (DMP) |
Business Decision Making Process (DMP) |
| Problem recognition: The first step in the consumer decision making process is to recognize the problem being faced by the consumer. The problem arises when there is a significant gap between what is actually expected & what is being provided (Harrison, Hague & Hague, 2012).It shall be taken into consideration, some of the elements such as culture, personal expectations, aspirations; etc shall be kept in mind while recognizing the problems. | Quality commitment: Quality of work & level of commitment are the two most important aspects taken into consideration by the business houses. It shall be seen that, whether the decisions so taken are of high quality and are not too complex to handle (Handlin, 2010). |
| Information search: Once problem has been recognized by the consumer, the second step within the decision making process is to search for the relevant information. Recalling information, experiences, personal feelings attached to it shall be kept in mind (Handlin, 2010). Two types of search shall be taken into consideration i.e. Internal & External. These two means shall be used in order to gather information regarding a particular commodity. | Leader’s information: It is taken into consideration by the business houses that, information can be utilized to well define the problem. A decision team shall be formulated which would help to resolve the issues as well as begin the entire decision making process (MRS Evidence Matters, 2005). |
| Alternative evaluation: Once the information search is done, various alternatives shall be taken into consideration (Handlin, 2010). A descriptive evaluation criteria shall be formulated which would help to evaluate the various alternatives. | Goal congruence: Goal congruence refers to the foremost aspect which is being taken into consideration by the business houses (Valerie, 1984). It shall be seen that, the subordinates along with the owners should be involved within the decision making process. This will help to motivate the subordinates to work towards the accomplishment of organizational goal. |
| Decision: Based upon the evaluation done in the above step, an alternative shall be selected. The alternative selected shall be such which would help to meet the needs of the customers (MRS Evidence Matters, 2005). | Conflict & information: The second last aspect which is being kept in mind is to see whether there will be conflict within the enterprise as a result of the decision so implemented. Full proof information shall be provided to each & every person within the organization. This is will help to address the problem in the best possible manner (Harrison, Hague & Hague, 2012). |
| Post decision evaluation: The last step which shall be taken into consideration by the consumer refers to the post decision evaluation. This means, whether the customer is satisfied or dissatisfied with the use of a particular product. This refers to the process where in the consumers will reevaluate the product or the alternative selected (Valerie, 1984). | SWOT analysis: The last which is being taken into consideration within the business decision making process is to conduct a SWOT analysis. This would help the business houses to see their strengths, weakness, prospective weaknesses & the opportunities which might be reaped in the future years to come (MRS Evidence Matters, 2005). |
Task 4 – 20 Marks
In progressing and developing business sales, you have identified the importance of “Buying Centre” to ‘Window World’. How might a better understanding of the terms; New Buy, Modified re-buy and Straight re-buy, assist ‘Window World’?
Ans4. In order to develop business sales, “Window World” shall take into consideration the following terms such as new buy, modified re buy & straight re buy. New buy refers to a situation where in the customer will buy an entirely new product. The main reason for an entirely new buy could be due to dissatisfaction from the previous good or service. It shall be kept in mind by Window World that, the customer might not be willing to buy a new product as he is not satisfied with the product offered. Hence, he will tend to buy an entirely new product (MRS Evidence Matters, 2005).
Modified re buy refers to buying the previous product with some modifications. The changes can be either from the producer’s side or the supplier’s side or due to some other element. In this particular situation the buyer would be required to modify the product either on either of the following basis i.e. price, suppliers, terms, etc (Harrison, Hague & Hague, 2012).
Straight re buy refers to a situation where the consumer will buy a good which is identical to the previous purchase. The purchase made would be practiced in an identical amount with identical terms from an identical supplier. It shall be seen that, when the consumers opt for straight re buy it means that the products have an attractive target group taking into consideration the marketing efforts within the production process (Harrison, Hague & Hague, 2012).
Task 5 – 15 Marks
‘Window World’ had a very good reputation with customers for its products and services within its consumer market-place and had ensured that attention was also paid to contacting and communicating with the customer after the completion of the sale. Why is this post purchase customer engagement still important when dealing with business customers?
Ans5. Once the product is being purchased by the consumer, there would be dissonance which might lead to disquieting amongst the features & various information which would support his/her decision to buy a particular brand. Hence, marketing communications shall be referred to as a strategic tool which would provide beliefs as well as high levels of evaluations regarding a particular brand (Handlin, 2010). A positive marketing communication will lead to reinforcement of the choice of the consumers &they will feel good about the product bought. Therefore, the job of the marketer does not end with the sale of the product. He marketer shall also take into consideration the post purchase satisfaction, post purchase actions & post purchase uses of the product (MRS Evidence Matters, 2005).
The elements which shall be kept in mind with respect to the post purchase behavior have been discussed in this section of the report. They are as follows:
Þ Post Purchase Satisfaction: Post purchase satisfaction refers to the first element which shall be kept in mind by the marketers once the product is bought. Satisfaction refers to the bridge between what is expected & what is perceived out of the product. When the perceived expectation is not up to the mark, the consumer would be disappointed, whereas if the expectation is over and above what is expected, then the consumer is delighted. It is this feeling which incites the consumer to buy the product again or not, recommend others to buy a particular product or not (Duff, 2012). Consumer forms a level of expectation from the various means which educate about the product. The various means of communication would be message flown by the seller, other source of information, friends, media, etc. If there is large gap between the levels of expectation than the perceived levels of expectations, it leads to greater dissatisfaction. The main importance of post purchase satisfaction is to check that, whether the customer is satisfied with the quality of the product or not. Whether the information provided by the seller truthfully represents the performance of the product or not. There are sellers who understate the levels of performance which provides the customer with high levels of consumer (CiteMan, 2006).
Þ Post Purchase Actions: Satisfaction as well as dissatisfaction of the product leads to high levels of influence over the behavior of the product. If the customer would be satisfied with the purchase of the product, there is a probability that he/she will purchase the product again. It shall be seen that, a satisfied customer will tend to speak positive things about the brand. Whereas, on the other hand a dissatisfied consumer will either return the product or dump the same. There would be certain decisions which shall be taken into consideration in order to satisfy the customer. Certain private actions which can be taken by the dissatisfied customer would be to either stop buying the product, warn family and friends i.e. not to buy the product, etc (Anderson, 2012).
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