1 / 17

Understanding Demand: Factors Influencing Your Purchase Decisions

This content explores the concept of demand, defined as the desire, ability, and willingness to buy a product at specific prices. It explains key principles like the Law of Demand, where people buy more of a product as prices decrease. Additionally, it discusses the impact of advertising on personal preferences, including print ads, product placements, and high-cost commercials. Understanding demand through demand schedules and curves, as well as the concept of diminishing marginal utility, is vital for marketers and consumers alike to make informed purchasing decisions.

mili
Download Presentation

Understanding Demand: Factors Influencing Your Purchase Decisions

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. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Ch. 4.1 Notes: Demand Why do you buy what you buy?

  2. Demand = the desire, ability, and willingness to buy a product at certain prices $230.00

  3. A. 2 Reasons explaining purchase decisions….. 1. Law of Demand = we buy more of a product when they lower the price over time Walmart to sell iPhone 5C for $79, iPhone 5S for $189 (9/12/13)

  4. 2. Personal preferences developed through 3 types of advertising….. a. Print Ads

  5. b. Product Placement http://www.youtube.com/watch?v=wACBAu9coUU

  6. c. Commercials 2014 Super Bowl 4 million per 30 second commercial paid by advertisers

  7. B. Demand Graphs 1. Demand Schedule > a listing that shows the amount people will buy of a product at different prices (Price Down = Quantity Up) 2. Demand Curve > graphing the demand schedule. 1. see site http://images.google.com/imgres?imgurl=http://www.econweb.com/MacroWelcome/sandd/Equilibrium.gif&imgrefurl=http://www.econweb.com/MacroWelcome/sandd/notes.html&h=211&w=255&sz=15&hl=en&start=2&tbnid=Y3tPXR9k3kHuAM:&tbnh=92&tbnw=111&prev=/images%3Fq%3Dequilibrium%2Bprice%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26sa%3DG

  8. II. Diminishing Marginal Utility > consumers have less satisfaction of products as they purchase more.

  9. 1. Explains why sellers must lower price eventually to attract more demand

  10. Advertisement Activity……. 1. Create a print ad for a product (magazine, newspaper, billboard) 2. Group of 2 to 3 3. Brainstorm and start. Follow instructions 4. Bring printed materials on Thurs. 5. Due Tues. Vote Wed. 6. We will vote for top 3 best and worst Ad Top 3 full credit and extra credit Last place gets possible F Bacay grades the rest for regular credit 7. 3 factors…Is your product clear? Who is your target consumer? Will it appeal to them?

  11. http://www.superbowl-commercials.org/14261.html ….. 2012 Demand Cure and Schedule> http://www.netmba.com/econ/micro/demand/curve/ Photo Examples of Econ Concepts > http://images.google.com/imgres?imgurl=http://www.econoclass.com/images/eggslarge.jpg&imgrefurl=http://www.econoclass.com/whatswrongwithpicture.html&h=827&w=1315&sz=142&hl=en&start=4&tbnid=gsddPZybB-FHgM:&tbnh=94&tbnw=150&prev=/images%3Fq%3Ddiminishing%2Bmarginal%2Butility%26gbv%3D2%26svnum%3D10%26hl%3Den%26sa%3DN http://www.youtube.com/watch?v=3HpIZrOH4zc = product placement GOOD GRAPHS = http://www.harpercollege.edu/mhealy/eco212i/lectures/s&d/s&d.htm

More Related