Bill is a yacht broker in the southeastern United States.For years he has had difficulty selling large yachts locally because there were few places to dock these boats.Yachts and spaces to dock them are an example of
A) substitute products.
B) purely competitive products.
C) status quo pricing products.
D) complementary products.
E) competitive parity products.

Question

Quizplus · Accepted Answer

Complementary products are those that are purchased or used together. In this case, the yachts and spaces to dock them are complementary products, as without a place to dock the yacht, it is not very useful. Bill's difficulty in selling large yachts is due to the lack of availability of complementary products (i.e. places to dock them), not due to competition or pricing issues, hence options B and C are incorrect. Similarly, there does not seem to be any substitute product for yachts or for spaces to dock them, so option A is also incorrect. Competitive parity products (option E) are products that are perceived by customers as being of similar quality and value from different providers, but this does not seem to be relevant in this scenario.

Bill Is a Yacht Broker in the Southeastern United States