Demand

Topics: Marketing, Competition, Consumer theory, Microeconomics, Economics, Choice / Pages: 1 (321 words) / Published: Jul 1st, 2015
How would you estimate the demand of a new sports product? Of the three demand factors, which do you think is the most critical in estimating demand?
Sports business is growing with the increasing consciousness of the population to become fit. The majority of the population is getting involved in physical activities. People are ready to shell out significant money to become skilled, have the best equipments and spend on the sports clothing and diet.
The demand explains the quantity of the product or a service the consumer is willing to buy when prices change. The new sports product’s demand will only occur if the consumer is able to buy it and is willing to purchase it a particular price. Demand revolves around the population, income and the preferences of the consumers. It keeps moving up and down as per the economy.
The sports market is large, similar and large product range is available, the potential buyer has good information on products. The potential buyers will determine the market size. The market prices are similar. There exists a situation of perfect competition. The prevalent competition in the market builds customer preferences. Competitors pose threat to similar products by either cut in their product prices or by little variation in the product. The Customer’s preference depends on the advertising, their family and peer group opinion. Today most of the consumers rate their preferences on real life experiences. They go for the product reviews. This is a basic reason for the sports celebrity posing for sports product advertisement. The Consumer associates himself closely to the celebrity and makes his choice.
Thus to conclude I would say consumer’s preference and his choice is the most critical factor in estimating the demand for a new sports product. In order to hold a firm position in the market, there needs to be a close study of the factors determining customer preferences and hence his choice process.

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