Understanding Business
Understanding Business
11th Edition
ISBN: 9780078023163
Author: William G Nickels, James McHugh, Susan McHugh
Publisher: McGraw-Hill Education
Question
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Chapter 13, Problem 1CT
Summary Introduction

To think critically about: The reasons due to which business to business sales might be more financially rewarding career area than consumer sales for salespeople.

Introduction: Items are often sold and resold several times before reaching the final consumer due to which the market becomes larger than the consumer market and is known as business-to-business market.

Expert Solution & Answer
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Explanation of Solution

When businesses buy goods and services from other businesses, they usually buy in large volumes. The business market usually pays the salesperson on a commission basis. It can be said business-to-business sales are more rewarding career than in the consumer sales due to the following reasons:

  • As the commission earned is a percentage of each sale made, more commission is earned as the sales made under business-to-business market are huge in volumes or in bulk.
  • If they succeed in attracting a potential business buyer then it would be easier to earn commission as compared in consumer market where buyers buy in small quantities and requires more efforts.
Conclusion
Hence, due to the large volumes of sale in the business-to-business market it will be easy and financially beneficial for the salespeople for reaping huge rewards and benefits.

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