The Behavioral Economics in Marketing’s Podcast Demand | Defintion Minute | Behavioral Economics in Marketing Podcast
Jan 14, 2023
A crisp mini-lesson on what drives demand and how quantity demanded responds to factors like price, necessity, quality and convenience. A pandemic travel example shows how regulations, perceptions and income shifts reshape demand. A quick primer on treating demand as a mathematical function and mapping variables to a price–quantity schedule.
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Demand Is A Multi‑Factor Function
- Demand combines quantity demanded with many influencing factors like price, quality, convenience, and income.
- These factors shape the demand function and determine how quantity responds to price changes.
Travel Demand Collapsed During COVID‑19
- Sandra uses travel demand during COVID‑19 as an example to show how many factors can collapse demand.
- Perceived risks, restrictions, and practical barriers made travel demand plummet despite other factors.
Nonprice Factors Shift Demand Curves
- Demand is modeled as a mathematical function or schedule relating price and quantity.
- Nonprice variables (laws, perceptions, fears, testing, quarantine) can shift that function dramatically.