The considerations for making deals in B2B business arrangements versus individual shopping appear vastly different, yet on closer scrutiny are not as apart. Of course, the former will look into aspects such as warranties and the value reflecting upon the level for whom purchased, while the latter will be about personal preferences. But deep down, just as renowned management thinker Abraham Maslow brought out his Theory of Needs for individual users, similarly industrial buyers too, seek value across levels. A study conducted by business consulting giant Bain has divided all such needs of industrial buyers into five levels. If one starts at the basic level, one begins with the Table Stakes which includes meeting specifications, regulatory compliance, ethical standards and the acceptability of the pricing set. The second level is about the functional value which may be divided into Economic and Performance. The former would include cost reduction, but improved sales while the latter speaks about the quality of product, level of innovations and the scalability of operations. The next Ease of Business tackles several broad topics such as productivity, access, relations, the corporate strategy envisioned and its operational implementation. The Individual level comprises of one’s personal needs as well as the career trajectory. At the very top, one finds the inspirational value comprising of the vision, hope and ensuing social responsibility.

Source:https://hbr.org/2018/03/the-b2b-elements-of-value

Uploaded Date:16 March 2018