Question

What type of demand occurs with seasonal products such as fans and woollen clothes, and how do managers address it?

Options

• Latent demand; managers stop all marketing activities

• Negative demand; managers increase prices significantly

• Overfull demand; managers eliminate the product during off-season

• Irregular demand; managers try to change the time pattern of demand through short-term incentives

Answer 1

Irregular demand is characteristic of seasonal products where demand fluctuates significantly at different times of the year. Managers address this through short-term incentives such as discounts, special promotions or bundled offers during off-peak seasons to smooth out demand patterns and maintain steady sales throughout the year.