Report on Buyer Behaviour in B2B

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1 Assignment I - Consumer Behaviour (23 Oct 12) AFP 12/ STUDY GROUP 6

REPORT ON UNDERSTANDING CONSUMER BEHAVIOUR: BUSINESS TO BUSINESS (B2B)- COMPUTER NETWORKING SYSTEMS

Objective 1. To understand the concepts of ‘Buyer Behaviour and Segmentation’ in a specific product situation through application. Definition of Product Category and Description of Product 2. The product category is B2B Products in which Computer Networking Services has been selected. A brief description of these is given below:(a) B2B Products. Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. The volume of B2B (Business-to-Business) transactions is much higher than the volume of Business to Customer, B2C transactions. [1][2][3]

(b) Computer Network Services. A network service is a service hosted on a computer network. With increasing reliance on IT and the ‘web’, the need for networked computers to optimise IT and ITES is all pervasive. The term network service covers a wide range of services deliverable by companies in this field some of the examples being engineering services, Virtual Private Networks, Internet, Network Management Services, Data Centre and Co-location Services and Value Added Services like Internet Telephony and Enterprise Mailing Solutions, business transformation, enterprise & custom applications, infrastructure management, business process outsourcing etc. As is evident the scope of CNS applications is extremely diverse and varies across industries. Consequently, these services demand customised development and configuration. 3. Why this particular product is interesting. In general B2B products forming a larger share of business activities are naturally interesting. Within B2B products, CNS is particularly interesting in the Indian context as internet usage of in India is on the threshold of an exponential growth. Presently worth about 100 Bn USD the industry is projected to grow at a steady rate of about 10-13%. Although a major chunk (about 75%) of the revenues earned by Indian companies in this sector are from overseas, this is likely to change as penetration of internet services and use of IT increases domestically. More and more businesses are discovering the economic benefits of IT and hence the emphasis on B2B computer networking services. The industry is also very dynamic as it changes with advancement and penetration of technology. The reputation of Indian companies has enabled access to overseas markets expanding the arena. It was considered particularly useful to be able to develop an understanding of the market in this rapidly developing and growing field of service.

2 4. Within the various companies in the CNS industry HCL was chosen as the representative company. This choice was based on recent performances of HCL exceeding all market expectations as also the fact that HCL Infotech had won one of the the largest defence networking contract represented in a dedicated network for the IAF’s. Accordingly the study has been conducted from the context of a company like ‘HCL Infotech’. 5. Profiling of the Target Group. B2B companies can broadly be classified based on their industry and their size particularly in assessing the CNS needs. Thus the target group for a CNS company would be large accounts and SMB houses both domestically and internationally. HCL’s profiling of target groups is essentially all B2B companies seeking IT solutions. It is seen from their “Technology that touches lives” campaign that their attempt is to have one generic campaign about the technological prowess of HCL. HCL is seen to be targeting customers from B2B and B2C groups. Their focus has been on providing CNS to a wide array of customers across various industry sectors such as aerospace, banking, biotechnology, defence, education etc as evidenced from their industry specific ad campaigns1. The range of their customers...
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