Importance of Demand Analysis in Business Decision Making
The quantity of goods and services that consumer is willing and able to purchase in the market at various prices during a period of time is called demand. Demand analysis plays a pivotal role in business decision-making by providing valuable insights into customer preferences, market trends, and future sales potential. It enables businesses to make informed choices in various aspects of their operations.
In this comprehensive explanation, we will delve into five key areas where demand analysis holds immense importance: forecasting sales, determining profit, making marketing decisions, making production decisions, and guiding financial decisions.