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