MKC1200 Study Guide - Final Guide: Market Power
Document Summary
Week 4 business behaviour: understand what constitutes business buyer behaviour, discuss how business buyer decision process differs from consumer buyer decision process. Business markets: made up of individuals or organisations that purchase products for the following purposes, to resell the product, to use the product in the production of other products, to use the product in their daily business operations. Marketing to business customers: high-value purchases, high-volume and regular repeat purchases. Fewer buyers and sellers - can lead to market power and concentration of business markets in major city centres. Formal assessment of purchase alternatives - must go through committees/multiple levels of approval. Long-term, ongoing relationships (and after-sales support) e. g. formal partnerships and joint ventures: demand fluctuations have different drivers and consequences - higher volatility. Characteristics of business demand: derived demand - driven by demand in consumer markets, has a "knock-o(cid:374)" effe(cid:272)t o(cid:374) all levels of the value (cid:272)hai(cid:374)
