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Market Demand

According to Kotler (2000), there are more than 90 varieties of market demand across five different space levels and three different time levels. For example, market demand may be for the short-term or long-term and it may cover a region, state, or the entire country or globe. With respect to market potential, market potential is defined as ôthe set of consumers who profess a sufficient level of interest in a market offerö (Kotler 2000, 62). Despite market potential, potential consumers must have access to product and have available income to afford purchasing it.

With respect to market demand and market potential for car insurance in Carson, California, a survey of demographics for the city helps define the ôavailable marketö û the market of consumers with access and income to afford the product. Sixty percent of the 66,988 residents of Carson who are 16-years of age or older, or 40,590, are employed (Profile 2000). Of the 40,590 employed residents, 36,500 of them commute to work with 73.9% driving alone and another 18.2% relying on carpooling (Profile 2000). Median household income in Carson, California is $52,284 with approximately 54% of residents making this amount of income or more annually (Profile 2000). Therefore, there is great demand and great market potential for auto insurance in Carson, California because a large number of residents drive, have access to purchase insurance and make enough income to afford the purchase of it.

There are some barriers to market demand in the region. A Conning & Company study revealed that 92% of respondents from the nationÆs 100 largest personal automobile insurance are now relying on credit data scores as a component of a driverÆs overall risk profile (Newsbriefs 2001). According to the Insurance Journal such use of credit scores in setting insurance rates and gauging risks is not only controversial but may also adversely impact demand, ôThe Conning study raises th...

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Market Demand. (1969, December 31). In LotsofEssays.com. Retrieved 04:12, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1711640.html