aims and objectives of factors affecting demand
Answers
The factors affecting demand are itself its aims and objectives. Their explanations have the objectives.
1- price:
This factor affects demand because when price rises of a good or service people tend to switch towards substitutes.
2- Availability of substitutes:
This refers to the types of and number of substitutes present for that good. Example, pepsi vs coke.
whichever is cheap, people prefer those ones. However, brand loyalty also counts.
3- complementary goods
The adjoint demand of a good matters. Example: petrol and cars are adjoint. If demand for cars rise, demand for petrol rises too.
4- fashion:
whatever is famous and trending people tend to follow that, like clothes for women
5- weather:
the weather controls food and clothing and activities. like skeeing vs swimming, soup vs cold drinks, sweater vs shorts
Demand is responsible for playing a critical part in the administration of each business. It causes an association to decrease dangers engaged with business exercises and settle on vital business choices.
Following are the Aims:
Figuring out production strategy:
Aides in covering the hole between the demand and supply of the product.It additionally helps in most extreme use of assets as tasks are arranged on the basis of forecasts.
Detailing pricing policy:
Alludes to a standout among the most essential goals of demand forecasting. An association sets costs of its items as indicated by their demand or the costs are directly proportional to the demand of the product.
Controlling sales:
When deciding the targets of the sales, which go about as a reason for assessing sales performance.
Arrangement of funds:
This suggests that the budgetary necessities of the venture are evaluated with the assistance of demand forecasting.