1.2.1 Demand 🎧 Flashcards
What is Demand ?
amount of goods that consumers are willing or able to buy at given price
What do we use to find demand ?( what does it show)
Basic demand curve - shows that if price of your products increases , the quantity of product bought decreases , leading to a decrease in demand
What are the 8 factors TAHT lead to a change in demand ?
1) complementary goods - products purchased together - if one products demand increased , the other will
Game console
2) substantive goods - good that can be swapped out for another eg apple and Samsung
If the demand of sub product it decreased for the alternative
3) changes in consumer income - as they rise , pattern of demand changes
More disposable income - more incline to purchase luxury products
Opposite
4) fashion tastes and preferences- demand pattern changes due to consumers taste
5) Advertising and branding - the more we advertise, the Marie we increase demand
Heavy Brands on goods will help to raise or keep demand stable
6) Demographics- statistics of characteristics of the human population
- demand will change to reflect the characteristics of population
Ageing? - demand in funeral services
7) External shocks -factors that are out of the business control - impact demand - new competitors
Inflation
Change in unemployment
Interest rates - higher ?
8) seasonality - certain products - will see some change in demand due to season of country
