8EXCEPTION TO THE LAW OF DEMAND :
▪ Demonstration Effect :
There are some people who buy a Commodity out of genuine need while others buy not because they have a genuine need for that commodity but because other people are purchasing. The purchase made by the latter category of buyers are made of such feelings as jealousy , competitions, social inferiority or the desire to raise their social status. Purchase made on account of these factors are the result of ' demonstration effect '. This effect is also known as 'Bandwagon effect'.
E.g.,
1. online shopping:
We all do online shopping from flipkart, amazon etc.. While doing online shopping, to get a better idea of the product and decide upon our purchase we make use of reviews and stars given by other customers. On account of good reviews we make our purchase.
2. Suppose you have an apple iphone x model. That phone has each and every feature that you need. And all your friends in your friend group have iphone x . Now a new model of i phone has been launched and all your friends are going to buy that new model. Though you don't need that new model as all your needs are satisfied with your current model but still you will buy the new model because you friends are buying and you dont want to feel inferior to them. The purchase made on this account is an example of demonstration effect.
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