Heavy-duty Rayovac flashlights are sold throughout Canada. The bulbs used in the flashlights, however, are manufactured by Philips, and the quantity of bulbs Philips sells is related to how many flashlights Rayovac manufactures. This is an example of:

Question

Quizplus · Accepted Answer

This scenario demonstrates derived demand, meaning that the demand for one product (Philips bulbs) is derived from the demand for another product (Rayovac flashlights), as the production of one affects the demand for the other. This is not an example of a tying arrangement, which involves forcing a customer to purchase one product in order to purchase another product. Relationship marketing and buildup marketing are not relevant to this scenario.

Heavy-Duty Rayovac Flashlights Are Sold Throughout Canada