Which of the Following Is a Difference Between Business-To-Consumer (B2C)

question 120

Multiple Choice

Which of the following is a difference between business-to-consumer (B2C) e-commerce and business-to-business (B2B) e-commerce?

• A) In B2C e-commerce, the number of customers in the target market is very large, whereas in B2B e-commerce, the number of customers in the target market is often limited to a few major business customers.
• B) In B2C e-commerce, the size of a typical individual transaction is very large, whereas in B2B e-commerce, the size of a typical individual transaction is relatively small.
• C) In B2C e-commerce, customers usually do careful multiple research before making a purchase, whereas in B2B e-commerce, purchases are mostly based on impulse.
• D) In B2C e-commerce, buyers and sellers often develop close and long-lasting relationships, whereas in B2B e-commerce, firms seldom develop a close working relationship with individual customers.

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Definitions:

Economic Profits

Profits exceeding the opportunity costs of all inputs, indicating a firm is not only covering its costs but earning more than the next best alternative use of its resources.

Product Demand Curve

A graphical representation showing the relationship between the price of a product and the quantity of the product demanded by consumers.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments and the economy to achieve a steady state of operations with no tendency for change.

Product Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.