Accelerator Principle

Marketing dictionary

Accelerator Principle

the notion that an increase or reduction in consumer demand will affect several layers of demand in organisational markets; for example, an increase in consumer demand for soft drinks will will lead to an increased demand by retailers for soft drinks, an increased demand by soft drink bottlers for aluminium cans, an increased demand by aluminium can manufacturers for aluminium sheet, an increased demand by aluminium sheet manufacturers for aluminium ore, and so on.

See: Derived Demand

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