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Demand

Demand

“The Demand for a firms product is influenced by a number of factors, some of which may be influenced by the firm and others which may not.” 
Explain and discuss.

Where there is demand there is a supplier and sometimes suppliers can create demand. There are many factors that influence demand for goods and services in the market place, some are the result of natural demand born of basic necessity or perceived needs, however firms can create desire for a product through the study and manipulation of the forces in demand and supply.

Every firm which provides goods or services to fee paying customers must, by its very nature, charge a price for that good or service, to pay for its costs, have retained profits for investments and to keep its shareholders happy.

The demand for a firm’s product is determined by various factors, some of these factors are in the hand of the firm, such as price, advertising, packaging, brand name, and quality. One of the firm’s influences on the demand for a product is price; the Law of Demand states that when the price of a good rises, the level of demand for that good will fall

Ø	as less

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