One of the biggest marketing mistakes I’ve seen in my career is the well-repeated saying:
“B2B and B2C marketing are basically the same. Business are just made up of people, after all.”
It makes sense on the surface – in fact, I’ve been guilty of this one myself.
But when you dig into the dynamics and psychology of group decision-making, you find there are huge differences between B2B (business to business) and B2C (business to consumer) decision-making.
Here’s the truth:
✅ Yes, people working in businesses rely on many of the same cognitive biases and mental rules of thumb as consumers.
❌ But the decision-making dynamics of a group are different than someone deciding which pair of sneakers to buy. Studies show that groups tend to be both more optimistic and risk-averse than they might be in their personal lives.
What is a Cognitive Bias?
A cognitive bias is a systematic error in thinking. It also works as a mental shortcut to making decisions or judgments. Everyone is susceptible to cognitive bias, no matter their age, gender, or cultural background.
While businesses are made up of people, the context in which a marketing director, for example, makes a decision is very different from someone deciding which pair of sneakers to buy. Therefore, there are different cognitive biases and decision-making dynamics that people deal with – consciously or not – in an organizational environment than in a consumer environment (like buying sneakers).
3 Cognitive Biases That B2B Buyers Are Prone To
1. Conformity Bias
Conformity Bias describes how our need to fit in with a group can change our behavior. When our position within a group is affected by the decisions we make (and how closely they conform with the leaders within a group), we care much more about “fitting in.”
2. False Consensus Effect
False Consensus Effect describes how we think our own behavior and beliefs as more common in the wider world than they actually are. For example, people who read the New York Times might think 60% of Americans read the New York Times, while non-readers might guess that only 10% of Americans are NYT readers.
This effect can be compounded in groups – they can be more optimistic that customers think the way they do because the group’s beliefs seem to (falsely) support this.
3. Group Polarization
Group Polarization describes how group members tend to reinforce their opinions and behaviors, so they get more pronounced (and extreme) over time.
Is your team a little risk-averse? The longer you work with them, the more risk-averse you’ll become, too.
The Bottom Line
B2B (Business to Business) and B2C (Business to Consumer) decision-making shares certain psychological principles. But the dynamics in B2B settings create unique decision-making challenges that marketers and entrepreneurs need to account for when they’re pitching a company or selling their services.