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B2B versus B2C

B2B stands for Business to (2) Business and refers to a Business selling goods or services to another Business. In the B2C (Business to Customer) model, the end user is an individual.

The result is the same for the company; they sell their product or service. However, the Business Model and the Marketing strategies are quite different.

A simple example is a farmer who grows strawberries. He can sell his entire crop to a retailer or distributor for a discounted price, in one easy transaction (B2B). Or he can set-up a small farm shop and sell punnets of strawberries to individual consumers at a higher price (B2C). The B2C model generates more money for his strawberries but requires a lot of his time.

With the B2B model, the Business needs to set-up long-term, trusted relationships with other Businesses. The B2C model requires marketing, brand recognition and advertising to attract customers.

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Question 1:
What is B2B?
a A rock band
b Business to Customer
c Business to Business
d Being too Busy
Question 2:
What is B2C?
a Business to Customer
b A Star Wars character
c Being too Careful
d Business to Business
Question 3:
What do B2B and B2C have in common?
a The Marketing Strategy is the same
b The Business model is the same
c They like strawberries
d They both involve a company selling products or services
Question 4:
If the farmer creates a shop and sells strawberries to passing customers, his Business model is ___?
a B2B
b Farming
c Selling Services
d B2C
Question 5:
If the farmer sold his crop of strawberries to a Supermarket, his Business model would be ____?
a B2B
b B2C
c Farming
d Selling Services
Question 6:
Which of these statements is NOT true for the B2B model?
a The Business should establish long-term relationships with other businesses
b The Business sells directly to the public at high prices
c The Business sells their services to another Business
d Business ABC sells their products to Business XYZ
Question 7:
Which of these statements IS true for B2C model?
a The Business sells their goods or services to another Business
b The Business only sells strawberries
c The Business can get the higher end-consumer price for their goods
d The Business needs to establish long-term relationships with other businesses
Question 8:
What is NOT suggested as a method of attracting customers?
a Advertising
b Marketing
c Brand recognition
d Selling at low prices
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