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Explain the major differences between business and consumer markets. In business markets, demand is derived, price-inelastic, joint, and fluctuating. Purchase volume is much larger than in consumer markets, customers are fewer in number and more geographically concentrated, and distribution channels are more direct. Buying is approached more formally using professional purchasing agents, more people are involved in the buying process, negotiation is more complex, and reciprocity and leasing are more common. And, finally, selling strategy in business markets normally focuses on personal contact instead of advertising. Questions 6.1 How might derived demand affect the manufacturing of an automobile? 6.2 Your boss has just asked you, the company purchasing manager, to buy new computers for an entire department. Since you have just recently purchased a new home computer, you are well-educated about the various products available. How will your buying process for the company differ from your recent personal purchase?
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