Kellogg's purchases large quantities of whole grain in order to produce its cereal products. Consumers' desire for cereal affects the size and frequency of Kellogg's purchases, which is an example of what characteristic of organizational buying?
A derived demand occurs when increase in demand for a particular commodity or services leads to the increase in demand for another commodity or service. For example an increase in demand for barley is because of an increase in demand for malt drinks.
