Which of the following products would be considered part of the business-to-business (B2B) market?

• A. Industrial machinery used in manufacturing
• B. Clothing purchased by households
• C. Groceries bought for personal consumption
• D. Smartphones sold to individual consumers

Answer: (A)

Verified step by step guidance

1. Understand the definition of the business-to-business (B2B) market: it consists of transactions where one business sells products or services to another business, rather than to individual consumers.
2. Identify the nature of each product listed: determine whether the product is typically purchased by businesses for use in their operations or by individual consumers for personal use.
3. Analyze 'Industrial machinery used in manufacturing': this is equipment bought by businesses to produce goods, so it fits the B2B market definition.
4. Analyze 'Clothing purchased by households', 'Groceries bought for personal consumption', and 'Smartphones sold to individual consumers': these are products bought by individuals for personal use, which belong to the business-to-consumer (B2C) market.
5. Conclude that the product considered part of the B2B market is the industrial machinery used in manufacturing, as it is sold from one business to another for production purposes.