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Effective demand is a demand for both buyers and buyers.
In a word, this is.
Effective Demand = Desire + Payment AbilityIf you want it, it will not be effective.
For example, there are many people who want luxury cars. However, if you do not have any income, savings, or loan screening conditions that you can actually buy, it will not be a corporate sales.
It’s important for a company to buy it, not a person who wants it.
This approach is directly linked to economics, price, corporate performance, and investment decisions.
What is effective demand?
Effective demand is a demand with purchasing power.
Purchasing is the power to actually buy products and services.
In other words, there are two conditions for effective demand:
| 条件 | 内容 |
|---|---|
| I want to buy | For products and services |
| Payment Ability | There are real money and credibility |
This is the first time for the company.
“I want to buy it, but I can’t buy it.”
However, it is not sales.
Just want it to be in demand
This is the most important thing.
For example, compare the following two:
| Contact | Effective demand? |
|---|---|
| I want luxury cars, but I don’t have to pay for purchases or loans | いいえ |
| High-end vehicles want to purchase funds or loans | Yes |
The same impact on the market is different even if you want.
If you have more people to buy, you can increase sales.
If there are many people who can not buy, it is difficult to connect to sales even if it is a topic.
There is a possibility that the popular products on SNS may not grow as you think in actual sales.
There is a possibility that the effective demand is not so large even in the topic.
Why Effective Demand Is Important
What is important for companies is whether they can actually sell.
Sales are born in the following streams:
People who want
↓
Buyers
↓
Buy
↓
Corporate salesOn the way, I will stop saying "No person can buy"
So companies consider price ranges, income layers, loans, installments,キャンペーン, discounts, etc. as well as simply looking at popularity.
Home appliances, automobiles, houses, smartphones, travel. The more expensive products, the more effective the way of thinking.
Relationship
If the viewer becomes worse, the effective demand becomes easier to fall.
However, it is not because the feeling you want to buy disappears.
Because the power to buy is weak.
In the event of a scenic deterioration, the following things are more prone to occur:
- Hard to increase salary
- Re Bonuses
- Increase un anxiety
- Prioritize savings with future anxiety
- Make it difficult to assemble a loan
reduces consumption.
When consumption decreases, corporate sales decrease.
When corporate sales fall, production and investment may be reduced.
If this is followed, the entire scene becomes weaker.
Relationship with Keines Economics
Valid demand is known as the way John Maynard Kynes focused.
Kaynes explained the cause of economic deterioration as a lack of effective demand.
In other words, even if you have the power to make, it is the idea that the economy will not turn well if you have a lack of power to buy.
Factory can make products.
Some people want to work.
But consumers and companies don’t buy enough.
In this state, the product is not sold, the company reduces production and weakens 。.
Therefore, governments may make a policy to support effective demand as economic counter、s.
Reasons for governments to take economic measures
Governments may make the following policies to increase effective demand:
- Tax reduction
- Payment
- Public investment
- Subsidy
- 雇用対策
- Finance
The purpose is to improve the payability of households and companies and to increase consumption and investment.
For example, the benefits are raised by the household.
Tax reduction increases the amount of money you can use.
Public investments increase corporate orders and.
There is a discussion on the effect of policy, but there is a “how to support buying power” in the center of the idea.
Relationship with Investment
Effective demand is also important when viewing corporate performance.
If the product has become a hot topic, it is difficult to increase sales if the price is too high and there are few people who can buy.
On the other hand, the sales will be easier to grow if you want to buy at the level of reaching the price.
If you are looking for investment, you can:
| See Points | 内容 |
|---|---|
| Contact Us | How much income can you buy? |
| Price range | Is it too high to cut the demand? |
| Loan Split | Is it possible to purchase expensive products? |
| Wage Environment | Are consumers more purchasing? |
| resistance | Is it bought even if the value is raised? |
For example, if the food chain increases the value and decreases the number of customers, the effective demand may not be about the price.
On the other hand, companies that do not have a lot of customers even if they increase their value can see that the quality of demand is strong.
Examples of daily life
Smartphone market
There are many people who want the latest smartphone.
However, if the price is too high, the person who actually buys is limited.
Discounts in installments, deducts, and carriers are also used to expand effective demand.
Sale
In the sale, more people can buy by lowering the price.
If you want it, but you can't buy it, you can buy it.
This is an example of increasing demand.
Home
You can't buy a house only.
You need a down payment, annual income, interest rate, loan review, and future repayment.
When the interest rate rises, the monthly repayment amount increases even with the same property price. It can reduce the number of people who can buy and decrease the effective demand.
Easy to misunderstand for beginners
| misunderstanding | In fact |
|---|---|
| If there are many people who want to sell | It is important that many people can buy |
| The spect is determined only by mood | High income, and purchasing power |
| Price reduction is bad for companies | It also has the effect of increasing effective demand |
| If you are a popular product, you can sell it even if it is high | The sales are hard to grow when the buyer is limited |
| You can see only sales in investment | See price, number of customers and purchasing power |
In particular, it is dangerous to sell because it is a topic.
There are different topical and effective demands.
If you don’t see whether you’re really buying it, you can read it in corporate analysis.
Practice
When you look at the economic news, you can see the following three items in a set.
- Payment
- 雇用
- 消費
If the salary increases, the is stable, and the consumption is increasing, the effective demand becomes strong.
On the other hand, if the salary does not grow, there is an anxiety, and the consumption is weak, the effective demand is weak.
The following three are available to view companies:
- Is it sold even if the value is raised
- Is the number of guests dropped?
- Is the price range suitable for consumer purchasing?
It is not just popular, but it is easy to determine whether or not it is actually sales.
Effective demand is a demand with increased intention and ability to pay.
The following points are:
- "I want + buy" If you just want it, it will be a corporate sales.
- In the economic deterioration, the purchasing power is weak, and the effective demand is weak.
- Kynes Economics focused on shortage of effective demand
- Government economic measures have a purpose to support effective demand
- In investment, see whether the product is really bought
First of all, think about this when you see products and companies.
"Is there a lot of people wanting?"
“Does the people actually buy?”
The market looks quite different just by separating these two.