B2B Buying Behavior

Geographic segments would be based on a person’s country, region, or city size. Lastly, behavioral would consist of groups divided by occasions, usage, or attitudes when making a decision on whether or not to purchase the product/service (Werner, 2017). These variables can be analyzed through various methods including interviews, questionnaires, and customer data (Harvard, 2016).

- Used business strategy called vertical integration, which a company would control every stage of industrial process, from mining the raw material to transporting to product.

Vertical integration is a concept in which a company develops or acquires production units for outputs which are

Vertical integration is when one firm joins with another at a different stage of the same production process. Forward Vertical is when the other firm is at a later stage and Backward Vertical is when the other firm is at an earlier stage. Vertical integration as a whole allows for a firm to control key stages of the production process; guarantees access to a market; and gains control of supplies. Companies such as Zara and American Apparel are vertically integrated, especially at key stages of

Vertical integration- a company controlled all parts of production from raw mats to the finished goods

Andrew Carnegie, for one, built a giant steel empire using vertical integration, a business tactic that increased profits by eliminating middlemen from the production line. Conversely, John D. Rockefeller’s Standard Oil Company used horizontal

Vertical integration – when you choose to produce raw materials and/or distribute finished goods themselves rather than rely on independent suppliers, factors and agents for these tasks

Horizontal integration involves buying out other companies and taking over one single step of an industrial process. It establishes a monopoly because, with horizontal integration, everyone must go the company that has monopolized that step.

Vertical integration is a business growth strategy for economics of scale. It is typified by one firm engaged in different parts of production example; growing raw materials, manufacturing, transporting, marketing, and/or retailing to expand business in existing market for the firm. It can function in two directions both forward integration and backward integration.

From this sprang forth the popularization of CEOs and different departments to increase efficiency. Vertical integration because many of big businessmen of the time had a large capital to start out, so buying all the means of production was an easy and sound investment. Horizontal integration calls for buying out the competition. In these cases, the largest company would often times drive down their prices so low that the smaller company would attempt to compete, but end belly up and sell the business for a smaller

Each part plays a role when it comes to buying behavior, but I feel that personal

The United States became an industrial power by tapping North America’s vast natural resources, including minerals, lumber and coal, particularly in the newly developed west. Industries that had once depended on waterpower began to use prodigious amounts of coal. Steam engines replaced human and animal labor, and kerosene replaced whale oil and wood. By 1900, America’s factories and urban homes were converting to electric power. Dependence on fossil fuels (oil, coal, natural gas), which powered machines of unprecedented speed and strength, transformed both the economy and the country’s natural and built environments. What is vertical integration? Vertical integration is a business model in which one company controlled all aspects of

Backward integration is a type of vertical integration in which a company takes control over its suppliers. It is a form of acquisition of the intermediary players involved in supplying the raw materials used in the production process of the firm. Raw materials, intermediate manufacturing and assembly are controlled by the firm whereas distribution to the end customer is done by a third party company. In this way, company increases production efficiency and gains a competitive advantage by lowering its production cost.

A company won’t integrate vertically its production if it against its business interest. There are some vertically

The fourth stage consists of individual and environmental influences that affect all five stages of the decision process. Individual characteristics include motives, values, lifestyle, and personality; the social influences are culture, reference groups, and family. Situational influences, such as a consumer’s financial condition, also influence the decision process. (Engel, 1995)