A Psychology of Supply and Demand in Business

Before we start our essay, look around, right now! What can you see? Okay, I can be the first to answer this; first, I have a laptop because I am writing this essay. There are 3 beds, 2 bags, some clothes, a fan, a mirror…etc. What is the reason for having these stuff in the room? Let’s try to explain the reason for having the fan in the room.

Firstly/First of all, I am writing this essay in the city of Alexandria, the time is 10 p.m., but the temperature is 28°. However, it actually feels like 31° and the humidity is 68%. There are many reasons for having a fan like this one in the room. Another question is; how this fan came to the room? It was bought from a shop. Well, everything is good until here, isn’t it? It is okay, I guess.

Let us look from another side and think like businessmen. You are an owner of a company which produces fans, air conditioners…etc. How can you sell your products? It is simple! You have to introduce your company to as much as you can, but how can you do this? Will you go down the street and shout to everybody like ‘I have a fan company! Please come and buy!’? Absolutely not! Instead, you can make deals with some newspapers, TV channels, advertisement departments of Google (Google Ads), some billboard companies, all according to your budget.  Second step is about the introduction; you have to introduce your products very well. This point is very critical as you have to attract people as much as possible and you cannot trick people. If you trick them, you cannot sell your product in the future and you might be in debt. There are only a few fields where you can trick people and stay in business. One of them is the food sector, if you go to a café where you find many attractive food photos in the menu. This happens in many of the cafes and restaurants. And yet, you know that these photos are not real. Then, the possibility to choose the food plate, which has a photo in the menu, is more than the others. This is because you actually do not know the other ones, and you might ask questions like ‘What does it look like? , or ‘What is the portion of the food in the plate?’ or ‘What are the ingredients of this meal?’…etc.

There is an important word related to marketing, which is ‘attractiveness’. If you attract the people, you can sell your products easily. There is a competition among companies and businessmen. Businessmen try to be part of society’s daily life, because there are some important aspects for customers to buy a product. One of them is popularity, another is safety. There are many more aspects but let’s consider these two terms sufficient enough to explain the importance of introducing yourself in the trade market. Let us explain this, in my opinion, people think that popular brands are richer than other brands and if they are rich, they can produce better products, thus, they are safer than other ones. That is why businessmen have to understand the customers’ demand and psychology, and they have to measure the demand carefully by using psychology.

 

Is psychology beneficial for business in attracting customers? Businessmen are rivals among themselves and they are also human beings. So, what does this mean! It is simple; a businessman who knows more about the customer’s demand and human psychology can win this competition easily. However, how can he do this? A businessman who understands the demand before other rivals and captures the market and keeps his place can easily win this competition. This is very similar to the theory of Charles Darwin; I mean the theory of ‘Natural Selection’. Briefly, according to this theory, stronger people survive, while weak people disappear. The Global system of trade is the same; stronger businessmen beat the weak ones and survive successfully. There are many benefits of psychology in the business world, especially for businessmen, as we can see.

Yet, we can mention many more benefits, but these are sufficient to understand the concept, I guess. We have to remember that psychology is the science of human behaviors and it is everywhere in society. This is sufficient to understand the importance of psychology.

                                                                                                             Written by:  Yaşar Köse

                                                                                                                Photo by: Chris Riebschlager

Edited by: Jailan Saeed, Mona Timor Shehata