Heavy-duty Rayovac flashlights are sold 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

This scenario describes derived demand, as the demand for Philips bulbs is derived from the demand for Rayovac flashlights.

Heavy-Duty Rayovac Flashlights Are Sold Throughout the United States