Heavy-duty Rayovac flashlights are sold throughout the United States.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
A)a tying arrangement.
B)reciprocity.
C)built demand.
D)relationship marketing.
E)derived demand.

Question

Quizplus · Accepted Answer

This scenario represents derived demand because the demand for Philips bulbs is derived from the demand for Rayovac flashlights.

Heavy-Duty Rayovac Flashlights Are Sold Throughout the United States