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Discussion

Demand going up and down with time upsetting alignment with supply is known as .................... .

  • A.Excess
  • B.Declining
  • C.Latent
  • D.Fluctuating

Answer: D

The keyed answer is Fluctuating demand.

Demand that rises and falls over time (by season, day or hour), so that it does not match the available supply at every moment, is what Kotler classifies as irregular demand; the paper calls it fluctuating demand. Examples are crowded trains at rush hour and empty ones at midday. Marketers respond with synchromarketing, using flexible pricing and promotion to smooth the pattern.

Excess (overfull) demand is a steady level of demand higher than the firm can meet, declining demand is a falling trend, and latent demand is a need that no existing product yet satisfies. None of these describes demand going up and down over time.

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