Heavy-duty Rayovac flashlights are sold to consumers throughout the United States. 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

Derived demand occurs when the demand for one product or service is dependent on the demand for another product or service. In this case, the demand for Philips bulbs is dependent on the demand for Rayovac flashlights.

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