What Is Selective Demand?
Selective demand is a term used to describe the phenomenon of customers only wanting certain products or services from a company. This occurs either because the customer has a preference for certain products or services, or because the company has limited resources and only certain options are available. Selective demand can have a significant impact on a company’s profit margins, as customers may be unwilling to purchase other products or services offered by the company.
Examples of Selective Demand
Selective demand can be seen in many different scenarios. Here are some examples of selective demand that businesses may encounter:
- A customer may only purchase a certain type of product, such as organic food, or a certain brand of clothing.
- A customer may only purchase products or services from a certain company, such as Amazon or Apple.
- A customer may only purchase products or services that are discounted or on sale.
- A customer may only purchase products or services that are in line with their values, such as environmentally conscious products.
Impact of Selective Demand
Selective demand can have a significant impact on a company’s bottom line. If customers are not willing to purchase other products or services offered by the company, it can limit the company’s ability to generate revenue. Additionally, it can lead to a decrease in customer loyalty, as customers may be less likely to return to the company in the future if they do not find what they are looking for.
Conclusion
Selective demand is a phenomenon that can have a significant impact on a company’s bottom line. Companies must be aware of their customers’ preferences and be prepared to offer them products and services that meet their needs. This will help ensure that customers are satisfied and that the company can continue to generate revenue.