Answer to Question #18302 in Economics for jason bates

Question

Report the demographic and independent variables that are relevant to complete a demand analysis providing a rationale for the selection of the variables

Answer 1

Demand analysis is the research into the desire of consumers for a particular product or service. It is used to identify who wants
to buy a given product, how much they are likely to pay for it, how many units
they might purchase, and other factors that can be used to determine product
design, selling cost, and advertising strategy for a product.
The demand sensitivity analysis determines the change in quantity demanded in response to changes of any of its factors - price, income, interests,occupation, marital status, etc. Grouping of households by gross income or income per family member (it is clear that
patterns of family of two and a family of six for equal wages will be
different). Different composition of the family also have different
requirements for the number and nature of the goods and services purchased.
Finally, take into account the differences in consumption based on social,
national, and other factors. There are mathematical methods to identify the
best (not too fractional, but not too enlargement) of the division of people on
the socio-demographic groups, some similar to the parameters of consumption.
The second way - grouping families by the nature of their purchases and use of
services. In one group are also covered family, approximately similar in
structure and parameters of consumption.