Question

How can consumer's expectations reduce and increase demand?

I really need help with this question.
Thanks

Macy:))

Answer 1

If a business falls short of consumers' expectation, then demand falls. The consumers don't want what the company is selling.

Some good examples are in the fashion industry -- in which clothes quickly go out of style -- and woe to the company that continues to try to sell clothing the consumer doesn't want.

However, if consumers want and need a product, the demand will greatly increase.

I remember when McDonald's was first getting started nationwide. In the early 1960s, it was difficult to find inexpensive restaurant food. As we travelled around the state, we desperately needed McDonald's to feed ourselves and young children on a very limited budget. Voila -- McD met the demand and provided consumers what they wanted.

Answer 2

Thanks Mrs. Sue you've really helped me alot!

Macy:))

Answer 3

You're very welcome, Macy. I'm glad I could clarify this for you.