Conceptual structure of demand model
This presentation is the property of its rightful owner.
Sponsored Links
1 / 4

Conceptual Structure of Demand Model PowerPoint PPT Presentation


  • 44 Views
  • Uploaded on
  • Presentation posted in: General

TID. RD/N. Conceptual Structure of Demand Model. Firm Demand = Total Industry Demand * Market Share Define Market Share = Firm Demand / Total Industry Demand Market Share = Firm Demand / (Avg. Demand * Number of Firms) Market Share = Relative Demand / Number of Firms

Download Presentation

Conceptual Structure of Demand Model

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Conceptual structure of demand model

TID

RD/N

Conceptual Structure of Demand Model

Firm Demand = Total Industry Demand * MarketShare

Define Market Share = Firm Demand / Total Industry Demand

Market Share = Firm Demand / (Avg. Demand * Number of Firms)

Market Share = Relative Demand / Number of Firms

Firm Demand = Total Industry Demand * (Relative Demand / N)

Macro-economic Influences

Seasonal Patterns

Stage of Life Cycle

Exogenous

Demand

Industry Activity

Pricing, Promotion,

Quality

Endogenous

Demand

FD

Competitive Profile

Relative Pricing, Promotion,

Quality, and Loyalty

Relative

Demand


Total industry demand

TID

Exogenous Demand

Endogenous Demand

Macro-Economic

Influences

- Seasonality

- Stage of Life Cycle

Estimate Trend and

Seasonality using

Time Series Analysis

Industry Behavior

- Pricing (Avg Price)

- Promotion (Avg. Advertising)

- Product Quality (Avg. R&D)

Estimate weights of these factors using Regression Analysis

Total Industry Demand


Relative demand measure of market share

Pricing

Relative Price (PREL)

RD

Promotion

Loyalty

Relative Advertising

RD1 (t-1)

Quality

Relative R&D

Relative Demand(Measure of Market Share)

RD is firm specific and a measure of market share, the predictor variables should also be relative to industry averages.

For example, relative price of the firm is PREL = Firm’s Price / Industry Avg. Price


A dss for estimating demand

A DSS for Estimating Demand


  • Login