What is the relationship between complementary products?

The relationship between complementary products is characterized by a positive relationship, meaning that their demand rises and falls together. Complementary products are goods that are commonly used together, so when the demand for one increases, the demand for the other also tends to increase. For example, if more people buy coffee makers, the demand for coffee would likely increase as well. This synergistic effect occurs because consumers typically purchase complementary goods to enhance their use of one another.

The concept of complementary products is essential in marketing since companies often bundle these products or use cross-promotional strategies to boost sales. When products are complementary, marketers can capitalize on their interrelated nature to create bundled offers or promotions that entice customers to purchase both products, leading to increased overall sales.

This positive correlation does not hinge on independent individual product appeal, as seen in other scenarios, which means the demand isn't solely based on how each product stands alone in the market.