Demand Patterns

Demand for a product signifies the craving supported by the required purchasing power. Demand refers to the quantity of a commodity which people are ready and in a position to buy at a definite price. Demand is just not a sheer want but the desire couple with the capacity to purchase a product. Demand is for all time associated with the cost of the product and must be referred to in per unit of time. Demand takes place for a product with deviations in the income and differentiation in the cost of the related products. In order to increase the demand for a product, the manufacturers follow a range of techniques to increase the marketability of their product and employ product differentiation methods to make their product a standout.

Various types of demand patters are comprehensively discussed below:

• Constant demand: The demand for some products does not change under any circumstances. Example, prestige goods or goods that is necessary for daily usage.
• Cyclical demand: Demand that differs regularly over time typically in reaction to several effect of season or business cycle.
• Sudden rise: This type of demand occurs when there is a sudden lowering of factors. For instance, lowering of tax base can encourage people to purchase more.

The demand pattern for a particular product depends upon numerous factors that might influence the sales of the product. The demand for a product is influenced by a lot of internal and external factors. External factors are aplenty compared to the internal factors. Some of the factors influencing demand include:

• Income level is a major factor that plays a crucial role in the demand for a product. As the income increases, the purchasing power increases and vice versa.
• Season plays a considerate role. For instance, the demand for air conditioners increases during summer time and decreases during winter period.
• The price of substitute goods has its own demand on a product. Because, it is natural for people to sway towards alternate products which are low priced.
• Anticipations of the customer regarding the future will also change the demand.

Questions:

• What are the various patterns of demand?
• Mention some of the factors that affect demand.