Markiting question Business Product Demand need an example of one business Marke
ID: 1163500 • Letter: M
Question
Markiting question
Business Product Demand
need an example of one business Market
Th.e Ch.icago Cub.s are an org.anization that .has .an in.elastic demand because their fan base consists of many corporations that tend to be price insensitive -- this is unlike the Cornbelters in Normal, IL whose fan base consists of many young families that tend to be price sensitive and do not want to spend a lot of money on a ball game. After winning the World Series in 2016, ticket prices for Cubs' games went up 19.5% according to the Chicago Tribune, further exemplifying the Cubs' inelastic demand.
For this discussion, please give an example for one (either 1, 2, 3, 4, or 5) of the following in our business market:
(1) Elastic demand
(2) Inelastic demand
(3) Joint demand
(4) Fluctuating demand
(5) Derived demand
Explanation / Answer
Topic, selected for the discussion is derived demand in business or industrial market context.
Derived demand is the demand of products that is created due to the demand of another product or services. For example, a cookie or biscuit manufacturing company as a part of FMCG business market, manufactures different types of cookies to cater the demand among the consumers. But, the manufacturer also purchases the raw materials such as Butter, salt, sugar, caramel powder and other items. Here, the demand of these items such as Butter, salt, sugar, caramel powder is considered as derived demand and customers of these products are another business. So, the derived demand is B2B in nature. On a similar note, a motorbike manufacturer, manufactures different types of bikes and demands specific spare parts, gears, clutches that are manufactured by other vendors. So, the demand of these spare parts, are considered as derived demand and it is specific to the demand of the particular motorbike model. This derived demand is also B2B and industrial in nature.