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Organizations purchase goods to use in their ongoing operations and to resell to consumers, while consumers purchase goods for their personal use. Organizations also purchase more raw materials, such as wood, steel and other items used in manufacturing, than individuals who don't have the tools or knowledge to put those raw materials to use as a product. Organizations generally purchase goods in larger volumes than individuals and are driven by customer demand and need for manufacturing materials. Consumers, on the other hand, are driven both by need and by want. It is possible to entice a consumer to purchase something he does not need through effective marketing or peer pressure, but it is much harder to entice an organization to buy an un-needed product, especially when dealing with a purchasing department that is accountable for what it spends.

Bulk Buys
Organizations often purchase in bulk, whereas consumers typically do not. For example, a consumer might buy three gallons of white paint to paint his house while an organization might need 3,000 gallons to paint shelving units for resale. The organizational market is thus more condensed--it is possible to have a business succeed catering only to a small number of organizational clients--while businesses that typically focus on consumers sell smaller quantities to more people.

Related Reading: What Is the Relationship Between Organizational Functions & Organizational Structure?

Choices and Use
Consumers typically purchase goods for different reasons than organizations and have more freedom in choosing the items they want. A consumer may purchase a chair so people can sit comfortably in his home. He will be able to choose any chair within his budget that he likes. An organization, on the other hand, may purchase a chair because an administrative assistant