✦ ✦ ✦ Beep Boop - Blu Bot! At Your Service! Scanning Question . . .
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--------------------------------------------------------------------------------------------------------------Question: Why do you think demand analysis is essential for businesses?
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Answer: Demand analysis is the process of understanding the customer demand for a product or service in a target market. Companies use demand analysis techniques to determine if they can successfully enter a market and generate expected profits to expand their business operations. It also gives a better understanding of the high-demand markets for the company’s offerings, using which businesses can determine the viability of investing in each of these markets. The importance of demand analysis in the business decision is that it helps firms design their pricing policy. The Firm can choose either to lower or raise a product’s price by observing the trend of consumer demand for that product. Producers can’t fix the price for their products without first understanding the market demand for them. These are reasons why I think demand analysis is essential for businesses
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