Salespeople need to understand that purchases made by their customers' customers are based on:
A) derived demand.
B) a competitive advantage for the seller.
C) economies of scale in production.
D) just-in-time (JIT) inventory control.
E) direct demand.

Question

Quizplus · Accepted Answer

The concept of derived demand means that the demand for a product or service is derived from the demand for the goods or services provided by the purchaser's own customers. Salespeople need to understand this concept in order to identify the needs and wants of their customers and provide solutions that meet those needs.

Salespeople Need to Understand That Purchases Made by Their Customers