31. The five determinants of supply (G.O.S.P.I.T): - Government policies - Outlook - Size of industry (or the number of producers) - Price of related product lines - Input costs - Technology 32. Market equilibrium: Is the point where the seller is willing to sell, and the buyers are willing to buy at the same price. This price is known as the market clearing or equilibrium
There have been great developments in the sector and many investors are earning good money from their investments. Market, demand and supply are key issues that have impacted the growth of the real estate sector. These factors have helped determine the pattern of allocation of interests and resources in land utilization. In addition, these factors have impacted demand and supply shape and elaborate how technology demand and prices substitute as a change in price of resources.” Based on that, we need to analyse the rent-control-policy in country. First, there is a freedom in market entry and exit, this helps with having variety of housing supplies.
Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. Demand refers to how of a product or buyers desire service. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price.
When customers come to the choice of quality, they prefer to check workmanship. If it is high and really carefully made, they think that product is reliable. Quality can be defined broadly as superiority or excellence. Quality is one of the main factors that could influence on consumer perceived values. To check the understanding of quality customer, there are lots of factors that could influence on consumer perceived value however in this thesis quality was chosen as a one of the factors.
In economy market, products and services consume by customers whether he or she is a buyer, user or payer every day. There are three common locations that consumption usually can happen, that are at home, in business organization and in public places (Sheth & Mittal, 2004). Before a customer consumes a product or services, he or she needs to make a purchasing decision, such as what to buy, when to buy, where to buy, or how to buy (Sheth & Mittal, 2004). In general, the main reason for a consumer to buy something is to fulfill his or her level of satisfaction during the consumption process. According to Kotler and Armstrong (2012), there are five important steps in consumer purchased decision-making process, which consist of problem recognition,
The supply-demand model illustrated in figure 2 below shows how consumer are motivated to buy good due to the decreased price and how firms are unable to satisfy the demand. The shortage could be explain due in part to a decreasing returns to scale. In simpler word corporations are not receiving enough compensation whether perceived or
While can also be described as a group of potential consumers. It is not at all related with space. Market is highly dependent over three components i.e. demand, purchasing power and willingness to pay.Market can also be expressed as:M = P1*P2*P3Here M = Market P1 = Population Pattern (It talks about need pattern)P2 = Purchasing Power (Spending Pattern is dependent on Purchasing power) P3 = Purchase Behaviour (it talks about how they spend their money)Example: Exchange Process: Trade is another word for Exchange Process. In order to conduct any kind of exchange it is a must that there must be two parties, something of value to offer.
The economic situation someone would affect the choice of products, for example Rolex ranking upscale customers while Timex intended for medium-sized customers. The economic situation of a tremendous influence product selection and purchasing decisions on a particular product (Kotler, Armstrong, 2006, p.137). The economic situation will also affect the choice of a person who buys goods. Marketers also need to be sensitive to income and observing the trend that favored customers. For example, if customers want to take it easy with his family after being tired when buying goods in malls they can enjoy fresh donuts to choose from a variety of flavors to eat with family or friends.
A customer purchases products to satisfy their needs or wants which influences a consumer behavior to buy products to meet their need. According to Philip Kotler,”Consumer Behaviour is the study of how individuals, groups and organizations select, buy, use and dispose of goods, services, ideas and experiences to satisfy their needs and wants” Factors Influencing Consumer Behaviour There are different factors which are responsible for influencing Consumer Behaviour. • Economic Factors-Economic factors are the factors which directly affects the financial condition of consumer. Economic factors such as personal income, family income, government policy, discretionary income etc…influencing the consumer behavior in buying a product. • Psychological factors: Psychological factors such as need, motivation, personality, lifestyles etc affects very much in influencing consumer behavior as they purchase only to satisfy their needs.
They are goods and services available in the market to meet the demand of the client. o Place: in marketing, it is the point where demand and supply are set among buyers and sellers. o Promotion: it refers to communicating the offerings to the customers. It helps to be aware of the available products, and also it helps to know more about them. o Creating: it refers to the collaboration between suppliers and