Download a free selection of tools for calculating KPIs and increasing marketing metrics
Posted: Mon Jan 20, 2025 7:12 am
Consumer audience expectations. People buy more willingly and in larger quantities if the product is affordable to them and the price is commensurate with their income. For example, some people rush to buy a product today if they assume that its price may soon rise. Others make a purchase on credit, expecting an increase in their income and knowing that it will be easier to pay off later.
Popularity of the trade mark. From the point of view of utility theory and consumer behavior patterns, people in the process of making a purchase decision rely on rational thinking, compare various combinations of purchases and choose the most necessary ones. At the same time, factors such as whims, impulses, habits, resistance to change are practically not taken into account.
Age of the consumer line database audience. It has already been mentioned above that the level of demand is influenced by all factors of individual demand. These include the age of potential buyers. In addition, it is important here how exactly income is distributed between different age categories of the population. If, for example, people aged 65 and older have a higher income compared to young people (25-35 years), then the demand for goods (services) needed specifically by the elderly will be higher. This, in particular, may be medical care.
According to survey results, young families spend their money faster (compared to older families) and borrow more often. It has also been noted that young people are more active in buying cars, furniture, household items and generally durable goods. Therefore, when the earnings of this part of the population grow, the demand for the above increases at the same time.
Above we discussed the main factors influencing demand. When the need for a product changes depending on the need for another, we are talking about derived demand. For example, interest in steel often becomes a derivative of the demand for products made from it or goods for the manufacture of which it is required. And the demand for newspaper articles generates demand for this type of paper (the latter is a derivative of the former).
What can be called the main factor influencing sales volumes and sales potential? This is how saturated the market is with a specific product (especially when it comes to durable goods). Refrigerators, for example, are now in 95% of families, so the demand for them is quite low. The same can be said about gas stoves, washing machines and other household appliances.
As for goods purchased on credit (again, home appliances, cars, housing), their saleability is greatly influenced by the volume of consumer debt and the interest rates set by the bank. These factors can be even more significant in comparison with the income of the population. The consumer begins to buy less when the debt-to-income ratio is high and when bank interest rates are high.
Popularity of the trade mark. From the point of view of utility theory and consumer behavior patterns, people in the process of making a purchase decision rely on rational thinking, compare various combinations of purchases and choose the most necessary ones. At the same time, factors such as whims, impulses, habits, resistance to change are practically not taken into account.
Age of the consumer line database audience. It has already been mentioned above that the level of demand is influenced by all factors of individual demand. These include the age of potential buyers. In addition, it is important here how exactly income is distributed between different age categories of the population. If, for example, people aged 65 and older have a higher income compared to young people (25-35 years), then the demand for goods (services) needed specifically by the elderly will be higher. This, in particular, may be medical care.
According to survey results, young families spend their money faster (compared to older families) and borrow more often. It has also been noted that young people are more active in buying cars, furniture, household items and generally durable goods. Therefore, when the earnings of this part of the population grow, the demand for the above increases at the same time.
Above we discussed the main factors influencing demand. When the need for a product changes depending on the need for another, we are talking about derived demand. For example, interest in steel often becomes a derivative of the demand for products made from it or goods for the manufacture of which it is required. And the demand for newspaper articles generates demand for this type of paper (the latter is a derivative of the former).
What can be called the main factor influencing sales volumes and sales potential? This is how saturated the market is with a specific product (especially when it comes to durable goods). Refrigerators, for example, are now in 95% of families, so the demand for them is quite low. The same can be said about gas stoves, washing machines and other household appliances.
As for goods purchased on credit (again, home appliances, cars, housing), their saleability is greatly influenced by the volume of consumer debt and the interest rates set by the bank. These factors can be even more significant in comparison with the income of the population. The consumer begins to buy less when the debt-to-income ratio is high and when bank interest rates are high.