fators affecting demand Flashcards
factors affecting demand
1 price
2 income
3 no of buyers
4 seasonality of the products
5 occasion
6 fashion/ taste and preference
7 technological innovation
8 advertisements
9 price of related products
10 price expectations
considered as the most important factor
price
there is a tendency for people to buy more if they have more of this
income
we either _ or _ our income
save or spend
it is related to income factor
no of buyers (size of population)
the higher the population, the greater the demand
no of buyers (size of population)
there are products affected by this like agriculture sector
seasonality of products
it is related to seasonality of products
occasion
during christmas or valentines, demand for certain products rises
occasion
if its trendy there is higher demand for the product
fashion/taste and preference
an example of this is apple changing models
technological innovation
attracting probable buyers to buy their products. usually people won’t buy products unheard of.
advertisements
the price of products are connected
price of related products
it is the product related to the original product. when the price of the original product rises, its demand will go down.
complementary prodcuts
it is a product used as an alternative to the original product. they are considered inferior products. when the original product’s prices rises, its demand will rise too.
substitute product
