Changing Markets (Business Studies/Economics)

Demand for products and services change mostly due to personal preferences, however, other changes are brought about by broad economic and social trends, which involve most if not all parts of the society.

Population change affects the demand a lot. The total population is increasing slowly, however, major changes in the age structure and regional distribution of the population are continuously taking place. Culture, taste and lifestyle are all directly affected by education, which has expanded rapidly especially for women and some minority groups. This also affects demand. Social change also affects demand. By this, I mean that family life changes, and careers which affect the daily lives of people. Tastes and fashions, which change quite a lot, affect the demand for goods as well as the desire of the public to be up to date with fashion. Rising or falling incomes can have a big impact on the pattern of demand. If incomes increase or decrease, the demand of a good changes accordingly depending on the type of good; inferior or norma

organise their own as they can afford to pay that much extra.

However, other businesses compete on non-price. This is where businesses can add value to their products by finding ways to make it different. This can be by changing the quality, design, increasing advertising and improving packaging etc. These are only a few examples as here are many more things, which can be done to products to add value. Some businesses improve their reputation and develop a brand name.

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