Effects of Consumer Demand
A high consumer demand for a product means that there is a sure market for the particular product. This is the main reason why companies invest heavily in advertising and marketing to ensure that their products are in demand. There are various strategies that companies apply to ensure their products are in demand. However, consumer demand may have some effects on those who supply the products.
A major effect of consumer demand on suppliers is the Bullwhip effect which is a result of demand fluctuations. There are times when demand keeps shifting from high to