Consumer demand pattern in price sensitive & developing market
An analysis on consumer demand pattern reveals that consumer demand for a particular product or service evolves from basic product requirement with minimum or less features to a much sophisticated features, with add-ons, and pre/post sales services. This analysis is more accurate in price sensitive market.
In a price sensitive market, the consumer demand pattern evolve in a following manner
Initial stage
Infantry market stage when the demand is just started to pick and consumers are willing to try out the offer, because of one or many reasons like price factor, perception, necessity factor, marketing influence etc.
1. Entry product/service with basic functionality
2. Minimum or no added features
3. Low and affordable price
Growth stage
After trying with the entry level product consumer is willing to pay some extra of additional comfort and features. Some of the reasons for these changes are improved economic condition, positive experience, necessity factor, etc.
1. Increased functionality
2. Improved quality
3. Low to medium price
4. After sales service
Harvesting stage
After consuming the product and having a positive experience, at this stage consumer is willing to pay the premium for the added value.
1. Maximum functions
2. Premium quality and price
3. Pre and post sales services
4. Value added features
Considering this factor, companies can accordingly develop the product (evolutionary) marketing strategy to attract the consumer and succeed in the market.
Prof. Samir Randive
International School of Management Excellence, Navi Mumbai
The author of the article is Prof. Samir Randive, faculty – Marketing at International School of Management Excellence, Navi Mumbai. Prof. Samir has international experience in Sales and Marketing in FMCG, Hospitality and Education industry. Prof. Samir completed his BSc. form Mumbai University and MBA in International Management with specialization from university of Ballarat, Melbourne, Australia. He was the recipient of the director’s award and scholarship during his MBA program at University of Ballarat.