Organizational Buyer and Individual Buyer

Individual buyers purchase for individual consumption and organizational buyer purchases for consuming the items for business purposes. The key factors that differentiate between organizational and individual buyers are:

• Market Structure and Demand
• Buyer Characteristics
• Decision Process and Buying Patterns

Market Structure and Demand:

Organizational buyers are more concentrated geographically than individual markets.

The number of organizational buyers is lesser than individual buyers, but their quantity of purchases is more than individual buyers.

Buyer Characteristics

Many individuals or group involvement is seen in the decision-making process of organizational buyers.

Organizational buyers are quite knowledgeable and professional.

The buying motive is mostly more rational than the individual buyers.

Decision Process and Buying Patterns

Unlike consumer buying, organization buying follows a lot of formalities like proposals, quotations, and procedures.

Organizational buying includes extensive negotiation over a larger time period than consumer buying.