I was making an attempt to impress someone for quite some time. Lately, I started realizing that my efforts were not getting me the kind of reaction I was expecting. So I decided to take a passive approach. To my surprise, I received a reaction that exceeded my expectations, in every possible manner. I told myself that maybe I was expecting the reaction too early. With a positive mindset, I decided to continue my efforts. The very next day, her reaction tumbled down to touch its lowest level. I started wondering .... possibly why did this happen?
A textbook on economics gave me the direction I required. Consumer’s Demand is inversely proportional to the price of the product and Manufacturer’s Supply is directly proportional to the price. So as the price fluctuates, the supply and demand changes accordingly (and vice versa).
So, what is the deciding factor? Is it the demand quantity (expecting more than required) or is it the supply quantity (offering more than possible) or is it the price?
In my opinion, its the perception about the product decides everything. This perception could mean a satisfactory product better future, for the consumer. It could mean a promising market or future security, for the manufacturer. The more we start believing in possibilities, our perception grows. When we lose hope, the perception fades. As perception changes, price of the product fluctuates... thus leading to extreme changes in the supply and demand trends.
Ultimately, the cycle ends when either the consumer is not interested in the product (due to availability of an alternate product) or when the supplier is not interested in manufacturing the product (due to a low profit margin)
"Perception" ... that's the deciding factor.
Wednesday, November 11, 2009
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