Which of the following statements about organizational markets is true?
A) The average purchase size in organizational markets is much smaller than the average purchase size in the consumer market.
B) Demand for products in the organizational market is derived from demand for consumer products.
C) Most demand for organizational markets is fixed.
D) Organizational marketers have a broad customer base and a large number of buyers.
E) Joint demand is not a factor.

Question

Quizplus · Accepted Answer

Demand for products in the organizational market is derived from demand for consumer products. This means that the demand for a product in the organizational market is related to the demand for the end product which the organization produces. For example, the demand for steel by a car manufacturer is derived from the demand for cars by consumers.

Which of the Following Statements About Organizational Markets Is True