Price: The relationship between the price and the demand for any product is inversely related. With the price increase, the demand for the product decreases.
Income: The relationship between the income of the consumers and the demand for the product is directly related. With the increase in income, the purchasing power increases, and the demand for the products increases.
Consumer Choices: Trends, habits, and demographics affect the demand for the product; with the change in the fashion or living standard, the market demand changes accordingly.
Related Products: Change in the price for the substitute and complementary goods affects the price for the product. If the price of the paper increases, the price for the pen also will increase similarly if the price for the lime increases, the price for the lemon will also increase
Advertisements: Promotions and marketing affect the demand for the product immensely. Advertisement strategies affect the emotions of the consumers, and it changes the customersâ€™ purchasing preferences; as a result, of a change in the market demand.
Policies: Government laws affect the demand for products. Job loss, pay cuts, and high tax slabs reduce the demand for comfort and luxurious products. Similarly, employment opportunities increase the demand for such commodities.
Environment change: Earthquakes, floods, or any pandemic affect the demand for products. The higher demand for cold drinks in summers is because of the weather change in the region.
Festivals: Valentine’s Day or super bowl weekends increase the demand for products. Celebrations positively affect the demand for business products.
Tips to Increase Product Demand
The organization creates the demand for products to increase sales. Financial motives gain the reselling of products.
Any organizationâ€™s research and development team studies market behavior and offers specifications in the existing product to boost sales. Enhancing the product offerings by changing the design or offering iterations creates a greater demand for the product.
Advertisements and promotions attract customers, and organizations invest in various techniques of keeping loyal customers satisfied.
Discounts and rebates optimize the sales as they suggest a better value for the quality products. When the demand wanes, this technique helps to clear out the inventory toward the end of the year.
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