Customer Demand

All about it...

What is Customer Demand?

Customer demand is the quantity of the product a customer wants to buy. Effective demand is the name given to the amount of an item a person can and wants to buy. There are a number of factors that can affect customer demand including price, availability, competition and repeat purchase among others.

Price & Competition

The amount of money a product costs can drastically effect demand. People would be much more likely to buy a cheaper product over a more expensive one of the same quality. If a rival company offers products at a cheaper price, customers will be more inclined to buy theirs.

Fashion or Trend

The prices that rival brands offer could also decrease or increase demand. If a similar brand is offering products for less money than you, people will be more inclined to buy their products.