We all know that demand is an important term in economics. There are many factors that affects the demand of the people with respect to its supply. Apart from price, there are many other non-price factors that affects the demand.
Non-price factors affecting the demand are :-
INCOME~ When the earning capacity or income of the people rises, ultimately the demand rises as well. This is the time when people's interest shifts from the needs to their wants. But we have to take into consideration that there are certain goods or services which we will not buy even if the income doubles. For example- if we do not like certain brand, then no matter how much discount do the company offer or how much does our income increases, we will not buy the product.
PRICES OF COMPLEMENTARY GOOD/SERVICES~ The prices of complementary goods/services has direct impact on thr demand. If the price of a product increases, then it durectly reduces the demand of its complementary product as well. For example, if the cost of petrol increases, then the demand for vehicles gradually decreases.
PRICES OF SUBSTITUTE GOODS~ In case of substitutes, if the price of a particular product increases and that product has substitutes of cheaper price, then the demand for the substitutes increases drastically. For example, if the price of coca cola increases, then people will buy pepsi instead. Or if the price of butter increases, then people will opt for margarine or cheese.
TASTES~ The demand varies according to the need and preference of the consumer. So the companies spend huge amount in manufacturing the goods which are liked by the people in general in order to increase the demand. Customers are given first priority while manufacturing any product.
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