Customer Demand

Question 1

What is effective demand?

Answer 1

Demand backed up by the ability to pay

Question 2

What are the five things that change the demand for a product?

Answer 2

The price
The price of rival brands
Fashion or taste
How easy is it to find and buy
How well promoted is it

Question 3

What is the importance of price in demand for a product?

Answer 3

The cheaper the price of the product the larger the demand if the price is to high people may go and look for substitutes, but if the price is to low then customers may lose confidence and go else where

Question 4

What is the importance of price of rival brands in demand for a product?

Answer 4

Sales could suffer because of a cut in the price of rival products or services, people could swap to another brand to save money

Question 5

What is the importance of fashion and taste in demand for a product?

Answer 5

Appealing to what the customer wants and what is is “season” during that time

Question 6

What is the importance of how easy it is to find or buy in demand for a product?

Answer 6

More availability to purchase the product means that there is an increase in the sales due to customer availability

Question 7

What is the importance of how well promoted if is in demand for a product? (3 forms of promotion)

Answer 7

Packaging- opportunity to create an image and help repeat purchase
Advertising- target audience, other image creator, brand awareness
Sales promotion- boost short term sales

Question 8

What are two other important influences on demand?

Answer 8

Seasonality

The weather

Question 9

What is in addition to the quality of promotion?

Answer 9

Quantity of product

Question 10

What is the importance of of product trial and repeat purchase?

Answer 10

Demand is a function of getting people to try, then getting them to stay

Question 11

What is a way in obtaining trial? And what is one weakness of this method?

Answer 11

Advertising- high cost

Question 12

What are some ways to get repeat purchase?

Answer 12

A good quality product, distinctiveness- product needs to stand out

Question 13

What is a key part of repeat purchase?

Answer 13

Brand loyalty

Question 14

What is repeat purchase?

Answer 14

Customer loyalty reflected in regular purchasing

Question 15

What is a demand curve?

Answer 15

The downward slopping line drawn to show how falling prices lead to rising sales

Question 16

What is demand?

Answer 16

The quantity of product that the customer wants to buy