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Why is an artificial demand for a product or services created in the market?

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Question added by padmakumar pathiyil , Marketing Consultant , Management Consultancy
Date Posted: 2014/10/19
zafar abbas minhas
by zafar abbas minhas , Freelance Writer , DAILY MASHRAQ

SOMETIMES TO FILL THE MARKET WITH YOUR PRODUCT SO THAT COMPETITORS D,NT GET PLACE TO SELL IN PARTICULAR MARKET,,,, SOMETIMES TO OCCUPY THE RACKS IN THE RETAILS TO MAKE IT HARD FOR COMPETITORS ,,,,,   SOMETIMES TO GET NOTICED BY THE MARKET ETC............ GOOD DAY

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Agree with the views expressed by Mr. Zafar Abbas Minhas and Mr. Vinod Jetley.

to add to:1. Motive of price escalation another reason.2. Tempt competitors to increase the price, so that bulk stock can be disposed off at lower rates by price skimming technique in anticipation of reduction in actual demand.3.This is evident in some essential commodities like onion etc  by hoarding.4. Stock market strategies-insider trading (though not allowed).and............

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

Artificial demand constitutes demand for something that, in the absence of exposure to the vehicle of creating demand, would not exist. It has controversial applications in microeconomics (pump and dump strategy) and advertising. A demand is usually seen as artificial when it increases consumer utility very inefficiently; for example, a physician prescribing unnecessary surgeries would create artificial demand.Government spending with the primary purpose of providing jobs (rather than deliverying any other end product) has been labelled "artificial demand".

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