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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.