demand

Cards (10)

  • Demand refers to the number of goods/services customers are willing to buy at a given price
  • factors affecting demand- substitutes, complementary products, consumer income, fashion consumer tastes , advertising and branding, demographics, seasonal changes and external shocks
    • substitutes- demand for a brand or product type can be affected by the price change so if cheaper demand goes up
  • complementary products - when one good is bought with another e.g. printer and ink and if ink was to increase in price than printers demand would decrease
  • consumer income- higher disposable income means more money available to spend on other things leading to a increase in demand for expensive products
  • fashion consumer tastes- changing trends affect demand as consumers want new stuff eating too much sugar is a danger leading to fizzy drinks demand decreasing
  • advertising and branding- aims to increase demand for a product or encourage exisiting customers to be loyal
  • demographics- age, gender, ethnicity etc all have an impact on demand
  • seasonal changes- some goods are only sold at certain times of year such as Christmas cards and chocolates leeadign to the demand of them increasign n that time period
  • external shocks- if there is flood the demand for sandbags would increase to protect homes