Buyers are the central point, whatever the activities are performed in the market they are performed for their satisfaction. It is very important aspects of the market. A person or an institution that purchase goods or service is called buyer. It is very important aspects of the market. Buyers include both consumers and institutional buyers because it indicates both to the person who purchases goods or services for personal consumption or a person or institution that purchase goods for reuse propose.
Buyers can be classified into two types they are:
A person who contracts with a seller with the intention of buying the goods and services for the individual consumption or for the consumption of other person is called Non-Institutional Buyers. Non-Institutional Buyers may contact a seller directly or indirectly. Vegetables, medicines, food grains etc. are purchased from individual buyers.
Features of Individual Buyers
Buying motives are those influences or considerations which provide the impulse to buy, included action or determine choice in the purchase of goods and services.
The number of individual buyers is more they purchase a less than the person buying for personal consumption or for the consumption of the relatives.
Individual buyers may not have sufficient knowledge about the product they want to purchase. Individual buyers lack sufficient knowledge about the market and the product.
The individual buyer purchases the product in less quantity than the institutional buyer. To fulfill current need individual buyers purchase different products for the consumption purpose.
Those institutions which purchase products for institutional use are called institutional buyers. To achieve their objectives all institutions need various types of product. It includes producer, wholesaler, retailer, government institutions etc. It has perfect information about product features and availability.
Features of Institutional Buyers
They make the purchase decision in order to satisfy their specific objectives that is to make other goods and services, resell to other business users or to buyers. To conduct the organization's operations are some major motives of the buyers.
They purchase in large scale because their demand is high and the number of institutional buyers are limited. For examples, numbers of college are limited than the number of students where college purchase books and stationary in large scale.
Institutional buyers are well informed about what they are buying . They know more about the relative merits of alternative source of supply and competitive products.
Under the limit of purchase budget, Institutional budget is made. On the basis of economic conditions of the firm as well as the market demand of the product the budget are prepared.
Koirala, Dr. Kundan Dutta. Elementary Marketing. Kathmandu: Buddha Academic Publishers and Distributors Pvt. Ltd, 2014.
Thapa, Gopal, Dipendra K. Neupane and Dilli Raj Mishra. Introduction to Marketing. Kathmandu: Asmita Books Publishers and Distributors (P) Ltd., 2014.