Question: What do we mean when we say demand for industrial goods is derived? Transportation issues make a significant difference in a company's ability to use
What do we mean when we say demand for industrial goods is derived?
Transportation issues make a significant difference in a company's ability to use industrial goods in its products.
A product can be considered to be either a consumer product or an industrial product depending on how it is used.
Many business customers use contracts to establish purchase quantities.
Consumers buy industrial goods indirectly when they purchase consumer goods that use industrial goods as components.
Business customers consider other things than simply price when deciding to purchase an industrial good.
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