Factors Affecting Demand For Consumer Goods
The goods which can satisfy the human wants directly are called consumer goods. We demand consumer goods to satisfy the wants. The demand for consumer goods is called direct demand. The consumer goods can be classified into two types.
1. Durable consumer goods.
2. Non-durable consumer goods.
Durable consumer goods: The goods which can be used for some period of time in satisfaction of wants are called durable consumer goods. For example, TV, Refrigerator, Mobile phone etc.
Factors affecting demand for consumer goods (Durable Consumer Goods):
The demand for durable consumer goods is influenced by the following factors
1. Prices of the goods : If prices are high, the demand for them will be low and vice-versa.
2. Incomes of the consumers: The demand for durable consumer goods also depends upon the incomes of the consumers. If incomes are high, demand for them will be high and if incomes are low, demand for them will be low.
3. Span of durability : The demand for durable consumer goods also depends upon the span of durability of the commodity. The demand for longer span of durable goods will occur only at the time of replacement.
4. Technological improvement : It also influences the demand for durable consumer goods. Sometimes, even before a life span of a durable item, the necessity for replacing may arise due to technological improvement in the product. For example : replacement of a black and white TV even before the expiry of its life by Color TV.
5. Maintenance Cost : The maintenance cost of durable consumer goods also influence the demand for it. If the maintenance costs are higher, they will be replaced by new goods.
6. Changes in seasons : The demand for some of the durable consumer goods depends on the changes in the seasons. For example, During Winter Season the demand for woolen cloths will be high and during summer season the demand for these goods will be low.
Non-durable Consumer Goods : The goods which can satisfy human wants only once in consumption are called non-durable consumer goods. For Example : Vegetables, fruits, flowers, good etc.
Factors effecting demand for non-durable consumer goods
The demand for non-durable consumer goods is influenced by the Following factors
1. Income of the family – present and future
2. Social habits and conventions.
3. change in habits, fashions and:tastes of the consumers.
4. Demonstration effect.