Factors Affecting Consumer Demand

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Maksudasm
Posts: 987
Joined: Thu Jan 02, 2025 6:47 am

Factors Affecting Consumer Demand

Post by Maksudasm »

Incentive marketing will work most effectively if, when launching it, you take into account the factors that usually determine the level of consumer interest in the product:

Price. This is usually one of the most important points. If all other existing conditions are equal, demand and cost are inversely related. Low prices attract more buyers.

Quality. Customers always pay attention to the properties of a product, they like to compare it with existing analogues or competitors' offers. In particular, they look at technical characteristics, warranty conditions, the possibility of buying on credit, design style, ease of use, usefulness of the product, subsequent maintenance, etc. In general, if a product has the qualities that the consumer needs, then there will be good demand for it.

Consumer income level. Of course, the more finances buyers have at their disposal, the higher their ability to pay for purchases. The higher, of course, is the demand (both for specific goods and for any products in general). The exception is low-end products, the demand for which falls as the population's income grows.

An example of rational consumer behavior

Tastes and demands of potential line database buyers. It is absolutely clear that demand depends on the taste preferences of the audience. When the desire to buy disappears, it falls. And vice versa, as the desire grows, people begin to buy goods and services more willingly, more often, more often. Whether the product will remain in fashion depends on the release of improved versions, the emergence of new information about its usefulness and safety for health, etc.

Demand grows or falls under the influence of various factors: increased/decreased advertising, PR campaigns in relation to competing or similar products, etc., etc.

Prices of so-called related products. This is also a factor influencing the level of demand. The consumer always pays attention to the price of competing, related or substitute products, and this can greatly influence the final choice. For example, if the rental of a golf course increases by 50%, then the level of demand for clubs and balls for this game will most likely decrease.

Advertising campaigns. Stimulating marketing together with advertising can improve the demand situation by delivering to the consumer exactly the information he expects (no matter whether it is true or slightly misleading). Advertising as a tool is valuable because it helps to understand which methods of influencing people's tastes and preferences really work.
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