PRODUCT SALES DETERMINANTS
Product sales, generally speaking, depend upon the market
need, price of the product, demand-supply situation, purchasing power available
with the customers and their willingness to spend that on the purchase of
the product. The importance of these factors varies according to the type of
product sold i.e., consumer non-durable goods, consumer durable goods, and
industrial goods. Let us now identify the major determinants of product sales
relating to different types of goods.
Consumer
Non-durable Goods
Three, basic
factors determine the sales of relatively low priced, short shelf life and
frequently purchased consumer goods. These are: disposable personal income (personal
income minus direct taxes and other deductions) of the customer; demographic characteristics (age,
sex, occupation, urban/rural location, etc.) of the population, and the price level including competitive
structure of the market.
