Institutional markets consist of large buyers such as hospitals, hotels, and universities who purchase goods in bulk to provide services to their customers. These buyers prioritize quality over profit and aim to keep costs within their operating budget.
An institutional market is a consumer market made up of large buyers who tend to buy in volume by volume. Several different types of organizations may be involved in any given institutional market, including educational institutions, businesses, and non-profit organizations. In most cases, purchases are made in order to enable the organization to in turn provide services and goods to the people they serve.
An example of an institutional market buyer is the house of worship. Local congregations of different faiths often purchase materials to print worship orders, newsletters, and other printed items as part of their ongoing ministry to members and visitors. It is not unusual for a house of worship to also order furniture such as pews or other forms of seating in bulk quantities. Larger houses of worship often purchase food, paper plates, plastic utensils, and other items that can be used during social events held at the facility.
Hotels are another participant in the institutional market. Whether a stand-alone business or a larger chain, the hotel will often order fabrics in bulk. Items such as sheets, bedspreads, towels and similar products are often ordered in larger quantities to get a discount off the retail price. Even hotels that operate restaurants often order institutionally prepared foods that can be used to provide tasty meals available in the restaurant or through room service.
Another type of buyer common to the institutional market is the hospital. Healthcare facilities of this type not only purchase bedding and food in bulk, but may also purchase equipment for use in various parts of the facility. Beds and hardware for use in patient rooms are a couple of examples. X-ray equipment, surgical instruments, and disposable masks, gloves, and other items that are crucial to providing quality healthcare are also sold via this type of marketplace.
Colleges and universities are also consumers in an institutional market. Purchases such as textbooks, computers, classroom seating, and various teaching aids are just a few of the items buyers of this type will purchase on an ongoing basis. As with other large buyers, universities often buy in bulk to get a discount and stretch the institutional budget a little more.
In many cases, a buyer’s priority in an institutional market is not to earn a profit. Instead, the focus is on obtaining the highest possible quality of goods and services while keeping costs in line with the current operating budget. This enables the buyer to offer quality services and support to customers, which in turn enables them to continue operating for the long term.
Protect your devices with Threat Protection by NordVPN
