Reference no: EM131709824

Part 1

A good way to illustrate derived demand is to study the LeBron effect, the economic boost the basketball superstar LeBron James brought to his hometown of Cleveland, Ohio. Watch this video as the LeBron effect illustrates how businesses throughout the Cleveland area prospered and declined as a result of his choice of where to play.

Cleveland's Basketball Boom Brings Economic Vigor: 

https://www.econedlink.org/interactives/index.php?iid=87

Can you think of another situation similar to the LeBron effect in which derived demand was created by something that happened in the external environment-something that caused other companies to sell their products to other businesses to meet new demand? For example, after 9/11, many people were concerned for their safety or their ability to survive during an attack. This prompted companies to market safety kits for home and auto. Most of these kits were compilations of existing products, but the derived demand for bandages, flashlights, and so forth increased.

If you cannot think of a situation of derived demand, pay attention to your classmates' posts and add your thoughts as appropriate.

Part 2

Consider your own workplace. Do you work for a company, the military, or at a nonprofit institution such as a hospital? Describe your organization's buying center and how it adds value by procuring what your organization needs to conduct its business and produce its own products or services. How are the buying decisions made?

Comment on classmates'  posts as appropriate.