Page 213 - Foundations of Marketing

180 Part 3 | Customer Behavior and E-Marketing

Price is an essential consideration for business customers because it influences operating costs
and costs of goods sold, which in turn affect selling price, profit margin, and ultimately the abil-
ity to compete. A business customer is likely to compare the price of a product with the benefits
the product will yield to the organization, often over a period of years. When purchasing major
equipment, a business customer views price as the amount of investment necessary to obtain a
certain level of return or savings on business operations.
Most business customers try to maintain a specific level of quality in the products they buy.
To achieve this goal, most firms establish standards (usually stated as a percentage of defects
allowed) for these products and buy them on the basis of a set of expressed characteristics, com-
monly called specifications. Microsoft Dynamics, for instance, promises companies the ability
to achieve and maintain a high level of quality through its products, as you can see in the adver-
tisement. It promises businesses an increased ability to manage and organize resources, such
as at the auto maker Lotus. Microsoft guarantees a quality product that will help firms, such as
Lotus, attain excellence. The use of Lotus as an example of a client underscores the high level
of quality, as Lotus produces race cars, such as for the Lotus F-1 team, which leaves no room for
errors or defects. A customer evaluates the quality of the products being considered to determine
whether they meet specifications. If a product fails to meet specifications or malfunctions for the
ultimate consumer, the customer may switch to a different supplier. On the other hand, business
customers are also likely to be cautious about buying products that exceed minimum required
specifications because they often cost more than is necessary, which drives up the cost of goods
and services. Business customers, therefore, must strike a balance between quality and price
when making purchasing decisions. Specifications are designed to meet a customer’s wants, and
anything that does not contribute to meeting those wants may be considered wasteful.
Because their purchases tend to be large and may be complicated, business buyers value
service. Services offered by suppliers directly and indirectly influence customers’ costs,
sales, and profits. Offering quality customer service can be a means of gaining a competitive
advantage over other firms, which leads some businesses to seek out ways to improve their
customer service. Long known for its quality customer service and strong customer devo-
tion, The Walt Disney Company offers customer service consulting and training to businesses
through its Disney Institute. The service is highly popular, as many firms would like to attract

Concerns of Business
Customers
Business customers are AP Photo/Anonymous/PRNewsFoto/Cloud Cruiser
concerned about several
major factors, including costs,
acquiring the right product that
works effectively, and customer
service.

Copyright 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.