Enumerate and explain the 7 Factors that influence Demand:
1. Seasonality – this pertains to products not being available all throughout a whole year of
business such as harvest fruits and other produce.
2. Climate – this factor affects the demand of different consumers during climate patterns in their
daily lifestyle – one example is the increase in demand for rain apparel (umbrellas, raincoats,
and rain boots) in order to adjust to the incoming storm or rainy season.
3. Price of related goods – complimentary goods or substitute goods also factors in the demand
cycle for consumers, the value of a product is magnified when used with their complimenting
products – while substitute products provides a wider range of choices for the buyers to choose
from.
4. Income – income represents the buying power of a consumer, greater income means greater
capacity for demand or number of products that can be bought.
5. Number of buyers/consumers – the increasing change in population affects the demand for
basic commodities to sustain life – also this is observed on areas of business around university
belts or near school campuses.
6. Preferences – each buyer has their own decision making on what to purchase based on their
preferences, wants and needs.
7. Price expectation – demand when there is an expected price increase lowers because buyers will
prefer to buy at the present moment rather than during a period of increasing prices.