Demand in the Market
The market comprises a number of factors that stimulate the “propensity to consume” or the purchase of goods and services. Obviously, there are the generic needs, wants and desires associated with the major physiological, security, social, status and self-fulfillment needs of just living. Demand is a variable that is linked to each of these with varying intensity. Major demand pressure is evident in satisfying the physiological needs of food and procreative drives. And as in Maslow’s hierarchy of needs, the intensity level varies and is dependent on whether the physiological needs (food, water, rest, etc.) are satisfied or not. The old adage that an empty stomach cares little for political discussion is true. ( Again, the fact that a demand intensity is related to specific groups is further verification of the argument for segmentation of the market.) In the aggregate or collective sense demand also varies, but here the depth of demand is correlated to population growth; a product of immigration policies as well as birth rate increases. More people need more goods and services.