The market of a product is the availability of people who can buy the product for consumption or utility. This can be influenced by several factors depending on the demand and supply of the product. Other factors that influence the market of a product may include the tastes of the people fro which it draws its demand, the number of the people available to buy it, the income of the people who are likely to buy it and its price. In essence, price is the biggest factor that influences the demand of a product hence its market. On the other hand, demand is the need for a product by consumers.
Factors that may likely drive the demand of the product include the tastes of the people who might need to use yachts. There are people who find it within their interest to use yachts for fun or even for business and as such, they might be influenced to purchase the yachts. When used for business, the yachts is bound to be rented out or at other times, leased to tourists or locals. They prices of the yachts also play the key role on its demand. High prices may attract low demand. In such cases, the consumers are highly likely to rent or lease the yacht for use within a specified period. The number of buyers drives the need to supply more or less of the yachts. Other factors include the income of the people who will probably buy the yachts. It is a well known fact that yachts draw their market base from the people whose income is well above the average income earner. Therefore, the higher the income of the people in a specific area, the higher the chance that they can afford yachts.
Price elasticity is the measure of responsiveness of quantity demanded to a change in price when all other factors are held constant. In this case, when the prices of yachts go down, there is a chance that the demand will increase. On the other hand, when the prices go high, the demand will go down. We have to take note that the low prices might bring about not a steady rise in demand but a gradual one as the buyers are bound to question the price that has gone down. On the same ground, an increase in price might create demand amongst customers who believe that the quality of the yachts might have gone up so as to influence the prices.
So as to increase demand, the suppliers should increase the advertisements of their products so that they create the demand. They should also bring the price range to a level that favors both their profits and the demand by the customers who might be within the capacity to buy. The supply should be accompanied with such services as after sales services. This should include better offers for warranties and offers for the servicing of the yachts over a certain longer period of time. The suppliers should increase their demand by offering more appealing prices to the tourism sector players as tourists play a huge role in the consumption of services offered by people who rent out their yachts.