Task 3.1
Describe and illustrate 4 or more factors which influence demand for a selected product.
Income
Income level for the past 10 years have increased. This means more pole have a disposable income. 90% of the UK population now have more than £690 of disposable income per week. Sony can charge a high price for its PS3.More people having more money will increase the demand for the product.
www.esrc.ac.uk/ESRCInfoCentre/facts/index35.a...
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Price Q
Sony has reduce the price it sells its PlayStation 3 for. This means people on lower income can now afford to purchase it. It is trying to attract more customers by offering promotional offers such as free games with the product. This in turn will increase the demand for the product. Sony are planning to reduce their price again this is because their competitors Microsoft xbox have sold 20million units worldwide and sony have only sold 14 million worldwide. They want to overtake their sales and become the leading console company in the world.
http://www.guardian.co.uk/technology/gamesblog/2007/oct/05/ps3pricecut1
Sony offer free internet connection unlike rival competitor x box 360, who charge their customers for internet. Unlike the Xbox 360 Sony is blu ray compatible meaning it offers better quality and is better value for money. This in turn will increase the demand for the product.
Change in technology
The new PlayStation has a Blu Ray built into it, it also has better graphs and works faster than privies version. Competitors such as Nintendo WII cannot match the graphs are speed of the Ps3This will m ...