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EC05 B2B B2C ECom Dynamics

EC05 JSS -DM103 Ecommerce -BL01M03-Day 05-06Feb21 D41

06Feb21BL01M036febModule 3: Types of e-Transactions – B2B, B2C, C2C, C2B etc, Electronic Storefronts,

"Electronic Transaction

An electronic transaction is the sale or purchase of goods or services, whether between businesses, households, individuals, governments, and other public or private organisations, conducted over computer-mediated networks."

"An electronic payment is any kind of non-cash payment that doesn't involve a paper check. Methods of electronic payments include credit cards, debit cards and the ACH (Automated Clearing House) network. The ACH system comprises direct deposit, direct debit and electronic checks (e-checks).

E-payments are orchestrated by an electronic funds transfer (EFT), which is the process of transferring money from one bank account to another without any exchange by hand. Online payment methods that use EFT include: Credit and debit cards."

"Payment Options

  1. Cash.

  2. Checks.

  3. Debit cards.

  4. Credit cards.

  5. Mobile payments.

  6. Electronic bank transfers.

Different types of online financial transactions are:

National Electronic Fund Transfer (NEFT) ...

Real Time Gross Settlement (RTGS) ...

Electronic Clearing System (ECS) ...

Immediate Payment Service (IMPS) ...

Business-to-business (B2B), also called B-to-B, is a form of transaction between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business-to-business refers to business that is conducted between companies, rather than between a company and individual consumer.

There are four key factors sales Team need to be aware of when it comes to understanding B2B buying behaviour: status quo bias, loss aversion, decision paralysis and the impact of early influence

"Status quo bias

The implications for value selling are clear: if you are to persuade your customer of the need for change, you need to help them recognise that the status quo is unsafe. You need to contrast the threats, risks and consequences of their current path - the cost of inaction - with the potential benefits of realising the significant opportunities that lie before them - the value of change.

Loss aversion

Kahneman’s research also found that decision-makers were 2-3 time more likely to take decisive action in response to the threat of loss than they were in response to the opportunity for gain. This runs counter to the instincts of many less experienced or less effective sales people, who tend to be far more inclined to focus on the opportunity for gain than the threat of pain.

Decision paralysis

Research published by the CEB in “The Challenger Customer” found that the chances of a positive purchase decision declines in proportion to the number of stakeholders involved in the process. When a single individual is involved there is an 80% chance of success, but the number declines rapidly until - when six or more stakeholders are involved - the chances of reaching consensus about whether and how to act fall below 30%. The most common outcome of a complex B2B buying journey is now a decision to “do nothing” - and the most common cause is the failure of a large and unwieldy decision-making group to achieve a consensus for change

The impact of early influence

BANT (budget, authority, need and timeframe) used to be a popular means of qualifying sales opportunities. It encourages sales people to disqualify early opportunities that are not yet formal projects. This is a thoroughly dangerous conclusion: Forrester found that the vendor that did the most to shape the prospect's vision of a solution wins 3 out of 4 subsequent purchase decisions.


In a business setting, major purchases typically require input from various parts of the organization, such as finance, accounting, purchasing, information technology management, and senior management. The five main roles in a buying center are the users, influencers, buyers, deciders, and gatekeepers.

"What are the characteristics of B2B marketing?

B2B Market Characteristics involve that the buying unit involves more buyers. Thus, the DMU, the Decision Making Unit, is larger. In essence this means that more people will decide about each purchase. The more complex the purchase, the more likely it is that more people will be involved in the decision-making process."

"What is buying Behaviour?

Buying behaviour is the decision processes and acts of people/prospective customers involved in buying and using products. It helps in understanding: ... Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer."

"What are the three types of buying situations or buy classes?

There are three buy classes: new task purchase, modified rebuy, and straight rebuy. A new task purchase is a problem or requirement that has not arisen before, such that the buying center does not have any relevant experience with the product or service."

"What is a straight rebuy?

a purchase in which the customer buys the same goods in the same quantity on the same terms from the same supplier. See Buy Classes; Modified Rebuy; New Task Buying."

Modified Rebuy is a buying situation in which an individual or organization purchase goods that have been purchased previously but changes either the supplier or some other elements of the previous order. In this the buyer wants to modify product specifications, terms, prices, suppliers

"What is straight rebuy and modified rebuy?

Modified rebuy: situation where the purchaser makes some changes in the order, and it could require some additional analysis or research. Straight rebuy: where the purchaser reorders the same products without looking for information or considering other suppliers."

"Segmentation Criteria for the Segmentation of B2B Markets

After introducing the process used for the segmentation of B2B markets, we will now provide an overview of segmentation criteria that can be used to select target business markets.

  1. Demographic

  2. Industry: Company size: Location: Operating Variables

  3. Technology:

  4. Customer capabilities:

  5. Purchasing Approaches

  6. Purchasing-function organization: centralized or decentralized purchasing organization?

  7. Power structure:

  8. Nature of existing relationship:

  9. General purchasing policies:

  10. Purchasing criteria:

  11. Situation Factors

  12. Urgency:

  13. Specific application:

  14. Size or order:

  15. Personal Characteristics

  16. Buyer-seller similarity:

  17. Attitude towards risk:

  18. Loyalty: "

"What are the four types of B2B markets?

To help you get a better idea of the different types of business customers in B2B markets, we've put them into four basic categories: producers, resellers, governments, and institutions."

"What are the 4 types of market segmentation?



Geographic, and


"Price. Your goal should always be to get the maximum value for the lowest possible cost. ...

Quality of Product or Service. ...

Check References. ...

Customer Service. ...

Ethics and Integrity of The Vendor. ...

Professional Employees. ...

Recommendations from Others. ...

Existing Relationships."


5 Steps to a Successful Vendor Selection Process

  1. Analyze your business requirements. ...

  2. Search for a vendor. ...

  3. Write a Request for Proposal (RFP) & Request for Quotation (RFQ) ...

  4. Evaluating the proposal & selecting the vendor. ...

  5. Creating a contract negotiation strategy."

Additional Questions for Revision

  1. What is vendor selection process

  2. Discuss how a particular B2B Vendor is selected

  3. Discuss how online vendors will select its prospective buyers. What is the role of "Cookie" in buyer selection criteria

  4. Discuss the role of Google Analytics in identifying the general attributes of your website visitor

  5. What are the typical questions you will ask before selecting a particular B2B Vendor

  6. What are the typical questions you will ask before selecting a particular B2B Buyer

Lakshminarasimman V Rao

Lakshminarasimman V Rao | DM103 E Commerce |Digital Marketing| Study notes | Study Material | MBA | Corporate Neeti Consulting | Mysuru

All data above is a combination of data from Internet, purpose of this doc is for research and education only and responses received from Class students and interaction.

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