Demands

The price of the product is mainly based on the demand of the product. If more and more people are buying a single product, then the product has a huge demand and the pricing will vary as the demand increases. Demand of the product is influenced by many factors. They are size and number of the competitors, buyers, buyer's capacity and willingness and also their preference in buying the products in the market. So to determine the demand, the marketer has to predict how good his product will shine in the market. The price listed out by the company on each and every aspect of the product will have a different effect on the demand. You can say that the price charged for the product and the resulting demand are related to each other and they are inversely proportional to each other. When the price of the product is high, the demand will be less as people may tend to buy a different brand of the product.