2.9
Consumer tastes and preferences have a significant influence on demand.
For example, if more people prioritize health, they may increase their purchase of organic food. Likewise, a growing concern for the environment can boost the demand for eco-friendly products.
Similarly, increasing preferences for online streaming services like Netflix have decreased the demand for Blu-rays.
Beyond preferences, future expectations are pivotal in shaping present-day demand.
Recall the panic-buying during the onset of COVID-19.
People bought a lot of hand sanitizer and stocked them because they were afraid there wouldn't be enough.
Similarly, expectations about new product models can influence demand.
For instance, when people anticipate a new iPhone model, they might wait to buy the new one, reducing the demand for the existing models.
Apart from these, population composition also influences demand.
For example, in areas with a high number of older adults, there is an increased demand for healthcare services. Conversely, regions with many families with children see higher demand for toys and childcare services.
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