Heavy-duty Rayovac flashlights are sold to consumers throughout the United States.However,Philips manufactures the bulbs used in Rayovac flashlights.The quantity of bulbs Philips makes is related to how many flashlights Rayovac sells.This is an example of
A)a tying arrangement.
B)reciprocity.
C)strategic alliance demand.
D)relationship marketing.
E)derived demand.

Question

Quizplus · Accepted Answer

The scenario describes a situation where the demand for Philips bulbs is derived from the demand for Rayovac flashlights. This type of demand is called derived demand.

Heavy-Duty Rayovac Flashlights Are Sold to Consumers Throughout the United