Definition Definition

Derived demand

Derived demand refers to a business demand that ultimately comes from (derives from) the demand for consumer goods.

 HP and Dell buy Intel microprocessor chips to operate the computers they manufacture. If consumer demand for computers drops, so will the demand for microprocessors. Therefore, B-to-B marketers sometimes promote their products directly to final consumers to increase business demand. For example, W.I. Gore & Associates promotes its Gore-Tex fabrics directly to final consumers.

Share it: CITE

Related Definitions