Each of the factors influencing demand for products can also prompt the manufacturer to take certain actions. When seasonal factors are in effect, it is worthwhile to pre-estimate how much sales will decrease, and to increase the list of offered goods or services in order to maintain income. In the event of an increase in production costs, it is necessary to try to improve production or find suppliers offering cheaper raw materials.
What problems can be encountered when generating demand?
The process of its formation may be associated with certain problems:
Negative reviews if the buyer was provided with incomplete information: for example, the user manual is missing or contains errors;
"head-on" sales. As a rule, new products chinese overseas europe data package do not sell well, and in order to interest the audience, it is necessary to organize promotions with free giveaways or discounts. Often, to increase demand, a new product is offered in addition to a popular product. In this case, users also pay attention to it;
Unreasonable price. Before launching promotional activities, it is necessary to inform the consumer about what he can get by using the product and why exactly this price is set.
Often problems are caused by poor organization of work: low competence of employees, unreliable information, low-quality products are quite capable of disrupting the process.
What is elasticity of demand?
When studying the demand curve, it is important to pay attention to its elasticity for a particular product. It shows how demand changes under the influence of the level of market prices and how quickly consumers react to the rise or fall in cost. High elasticity of demand is typical for certain types of products. In particular, when household appliances start to become more expensive, buyers are less eager to buy them and, if the equipment breaks down, they most often do not buy a new device, but try to repair the old one. At the same time, elasticity is often affected not only by prices, but also by the level of consumer income. Accordingly, elasticity of demand is distinguished by price and income.
It is worth noting that when many manufacturers offer the same type of products, demand is characterized by high elasticity. Then, if the price in one store increases slightly, buyers will immediately turn to competitors. In this regard, with perfect competition, price control becomes a difficult task.
What is a demand schedule?
This is a curve that shows the relationship between demand and price. Most often, it moves to the left when demand decreases and to the right when demand increases. The position of the demand curve depends on the factors that influence demand, while maintaining the current price.
In real conditions, the shape of the curve is determined not only by cost, but also by various non-price factors that influence consumer actions. It is usually conventionally depicted as an arc, but in reality the graph may have different forms.
Demand for products is subject to frequent fluctuations. Its value is determined taking into account many price and non-price factors that influence customer demand. Price factors include the cost of the product itself, as well as its analogues, substitutes and complementary pro