Aftermarket (also after-market) refers to any market where the customers who purchase one product or service are likely to purchase a related, follow-on product.
The existence of an after-market is often a persuasive argument for manufacturers to stay in direct contact with end users. Manufacturers will use postage-paid guarantee cards, for example, to keep track of the address of end-users.
Aftermarket service includes product support for warranties, contracts, and parts sales.[1]
Success of the razor and blades business model relies entirely on profits from aftermarket merchandise.
Examples
- Customers who install a software package will constitute the aftermarket for software support services.
- Buyers of single-lens reflex cameras are an aftermarket for lenses and flashes.
See also
- Complementary good
- Aftermarket (disambiguation)
Notes and references
