Answer to Question #284140 in Marketing for Murad

Question

Describe the shifts from a sellers market to a buyyer market. Why was this move important to marketers.

Answer 1

When the demand for a particular good is high, for example, transportation demand during the Christmas period is always high. Therefore the investor will purchase or repair more vehicles expecting to make more money. The supply of transportation will increase to meet that demand and start to slow down. Consequently the there will be more empty vehicles without passengers Once that happens the investor will start reducing the transportation price so that they can bring back the money they used to buy or repair the vehicle and also satisfy market competition. This move helps the marketers to know when to buy or sell their goods and when to increase or decrease the supply of goods to avoid dead stocks.