After-market (general)
Encyclopedia
After-market refers to any market
where the customer
s 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.
Success of the razor and blades business model relies entirely on profits from aftermarket merchandise.
Market
A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers...
where the customer
Customer
A customer is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services...
s 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
Product support
Product support is a service provided by many retailers of various products, primarily electronics, that provides the end-user with a resource for information regarding the product, and help if the product should malfunction...
for warranties
Warranty
In business and legal transactions, a warranty is an assurance by one party to the other party that specific facts or conditions are true or will happen; the other party is permitted to rely on that assurance and seek some type of remedy if it is not true or followed.In real estate transactions, a...
, contracts, and parts sales.
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 after-market for software support services.
- Buyers of single-lens reflex cameraSingle-lens reflex cameraA single-lens reflex camera is a camera that typically uses a semi-automatic moving mirror system that permits the photographer to see exactly what will be captured by the film or digital imaging system, as opposed to pre-SLR cameras where the view through the viewfinder could be significantly...
s are an after-market for lenses and flashes.