Objectives of study of demand of consumer durables in rural market

It is expected that India would be the 5th largest consumer durable market in from being the 12th largest currently.

Objectives of study of demand of consumer durables in rural market

Forecasting refers to predicting the future level of sales on the basis of current and past trends. Sales forecasting is most passive. Importance of Demand Analysis: For example, the amount of money to be spent on advertising and sales promotion, the number of sales-persons to be hired or employedthe optimum size of the plant to be set up, and a host of other strategic business decisions largely depend on the level of demand.

It is in this context that an understanding of the theory of demand is really helpful to the practicing manager. The objective of corporate planning is to identify new areas of investment. In a dynamic world characterised by changes in tastes and preferences of buyers, technological change, migration of people from rural to urban areas, and so on, it is of paramount importance for the business manager to take into account prospective growth of demand in various market areas before taking any decision on new plant location i.

A huge amount of capital may be required to carry inventories of finished goods. Demand sales forecasts do provide some basis for projecting cash flows and net incomes periodically.

Laws of Demand Analysis: Perhaps one of the most fundamental concepts of economic theory is the Law of Demand. It simply states that all other variables remaining unchanged, as the price of a product say tea falls, the quantity demanded of it increases.

This may, however, lead to a fall in the quantity demanded of coffee. Thus the Law of Demand implies substitutability between products: We are focusing on some key concepts of demand analysis, even at the cost of repetition. To a layman demand refers to the desire for a commodity.

For example, we often make such loose statements that the demand for Maruti cars in India is universal. However, such statements are of little significance to an economist whose primary purpose is to give a quantitative expression to the above statement. It is possible to estimate demand relationships for a particular firm or for the whole industry.

Refrigerator

The basic concepts to be developed in this section are equally applicable to each type of demand, i. The table is known as the demand schedule. It can also be explained graphically as a line or curve.

Here we propose to explain the law of demand graphically. This is the general convention. The convention is to express the demand curve for a product on a two-dimensional graph as in Figure The demand curve also represents the average revenue function for the product.

The demand curve usually slopes downward from left to the right. The converse is also true. This is shown in Figure Thus if demand is a function of price: If, on the other hand, there is a change in any other variable affecting demand, the whole demand curve may shift to a new position as in Figure If the income of the buyer increases, the consumer will buy more of the same commodity even at the same price.

To show a point like B we have to draw a new demand curve D2. This is known as change in demand. A change in the price of a related good or a change in the tastes and preferences of buyers is likely to have the same effect.

Changes in demand imply such shifts of demand curves. Functions of Demand Analysis: This function shows the functional relationship between the quantity demanded of a commodity and all factors affecting the demand for the same.

It is usually stated as:The consumer durable industry can be classified into the below three segments: The consumer durable market was INR billion in FY16, it is expected that the market will be INR billion by FY This implies a growth rate of 14% CAGR.

Objectives of the study To study on brand loyalty of various brands in rural markets To study does the brand play a role in the purchase behavior of rural customers. RURAL MARKETING STRATEGIES OF CONSUMER DURABLES IN INDIA urban and rural markets which satisfies consumer demand and also achieves organizational objectives.

Thus, rural marketing is a two way marketing process that includes the flow of Consumer behavior, attitudes, personality and mental make ups are unique. The study of rural consumer.

be the major share of the consumer durables market. Consumer durables market is growing very fast because of increase in income levels, living standards, easy access to consumer finance, and increase in consumer awareness, and introduction of new models.

Objectives of study of demand of consumer durables in rural market

The demand for consumer durables has increased significantly. It is expected that India would be the 5th largest consumer durable market in from being the 12th largest currently. 2/3rd of the revenues in the consumer durable industry are generated from urban markets currently and the rest from rural and semi urban markets.

In a dynamic world characterised by changes in tastes and preferences of buyers, technological change, migration of people from rural to urban areas, and so on, it is of paramount importance for the business manager to take into account prospective growth of demand in various market areas before taking any decision on new plant location (i.e., the place of birth decision of a business firm).

Consumer Durables Industry Analysis Research Report - Fintapp Blog