Managers need to understand the concept of derived demand, particularly when they are selling capital equipment and big-ticket industrial services.

Question

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Derived demand refers to the demand for a product or service that results from the demand for another product or service. In the context of capital equipment and big-ticket industrial services, managers need to understand that the demand for their products is often a result of the demand for the final goods or services produced by their customers. This understanding helps in forecasting demand, strategic planning, and marketing efforts.

Managers Need to Understand the Concept of Derived Demand, Particularly