Difference between Consumer Market and Organizational Market
By Rebecca Rodriguez - June 15, 2023

Individuals and organizations both require purchases to do their everyday activities. However, there is a significant difference between how and why an organization acquires products and services, and how an individual shop. Understanding these distinctions is critical if a person wants to enter both the organizational and consumer markets as a business owner.


A consumer market is where consumers acquire things or services for their consumption rather than resell. Consumer markets are generally made up of things that individuals use daily.
Organizational markets are those in which businesses and individuals buy items for reasons other than personal consumption.

Consumer Market vs. Organizational Market

The consumer market consists of billions of people who are at the end of the company or service chain. These people naturally differ in age, financial level, education, and personal preferences. Consumers buy various goods and services, and their ability to choose which goods and services drive the whole economy. These decisions are influenced by multiple elements, including cultural, social, personal, and psychological ones.

While each customer is distinct and autonomous, organizational markets are vast groups of people or enterprises working toward a common objective. They are further divided into four types of organizational buyers: resellers, manufacturers, governments, and institutions.

Also, compared to Consumer markets, Organizational markets tend to aggregate geographically, whereas consumer markets are more evenly spread. Examples include the film industries associated with locales such as Hollywood, California, and Mumbai, India, as well as petrochemical enterprises in Russia and Saudi Arabia.
Furthermore, organizational markets prefer to make long-term investments. They may collaborate with a supplier at any stage of the purchasing process. On the other hand, buyers in the consumer market have little to no contact with the makers of the items they use.

Comparison Chart
  1. Billions of consumers buy a wide array of goods and services for individual satisfaction.
Large entities buy few goods and services in order to make profit.
  1. Evenly spread.
Tend to aggregate in certain locations as driven by demand.