In an ever-changing world, the need for things will always be there. But can we afford it that is the question? Well, we can only buy things when we have the capability to buy it. Our income guides our buying trends. This is why it is an essential part of demand. Today the income level is high compared to the income level that our parents had. This led to the increase in the standard of living. Today we demand a lot of product but a lot of time we are restricted by the price of it. We wait till we can afford it, but most of the time we wait or wish for our income to increase.
Today in India we see people craving for Dominos and KFC. They are here for a long time. But the price charged was often out of hands for a lot of people during the time when it was launched in India. But today the scene is a complete change. Today a family can afford to get Dominos or KFC anytime they want as the income level of the consumers have increased massively over the period and now it is in the affordable range of the consumers.
Taking another Example India is a country of spices. We produce a huge variety and quantity of spices but some spices were not available in India before. Spices like oregano thyme lemongrass come from Italy and Vietnam. To export them before was a huge loss for companies like Keya as people won’t buy it cause the cost was high. But today every household in urban India has it. Why would you ask? It is because people have the income to buy the product now.
Thus we can say Income of a consumer influence the demand for a product.
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