Complementary product
Complementary products are goods or services used together so demand for one can influence demand for the other. Examples include printers and compatible ink. Pricing and performance analysis should consider their combined customer value and lifetime contribution, including any commitment or switching costs. The degree of complementarity depends on customer needs and available alternatives; it does not mean the products must always be sold as a bundle or that all accessories have the same relationship.
Worked example
A printer earns $10 contribution when sold, while expected ink sales earn another $60 over the customer relationship. Discounting the printer may be commercially sensible if the additional ink demand and other assumptions are supported, rather than treating its stand-alone margin as the whole decision.
Common mistake
Confusing complementary goods used together with substitute goods that customers can use instead of each other.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Supporting | September 2026–June 2027 |
| ACCA | BT | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |