New Advancements in Business

New advancements in business

Literature review..............................................................................................................................3
REFERENCES................................................................................................................................8

Literature review
Theme 1: general factors relating to demand and profit & sales maximization
In view of Guchhait and et.al. (2017), it has been stated that the demand influences with
result of changes in the prices and the others factors remain as constant. There are several other
factors that influences or affects the demand of the services that includes price, perceived quality,
taste and preferences of the customers, income, advertising and confidence of the consumers.
Arias and et.al. (2018), viewed that changes in the taste and the preferences act as an
important or crucial factor that determines demand for services or the product. If the taste and
preferences for particular good or the services is high or greater, demand for such services or the
product is seen as high. However, if the particular product or the services are not preferred by the
customers due to changes in fashion then the demand for that specific product resulted as
decreasing or declining.
It has been analyzed by the Bashiri and Lawryshyn (2017); demand for the services
highly depends on income of people. Greater or higher the income of people, higher will be
demand for the goods and services. On the hand, lower the income results in lower demand for
the goods because it reduces the purchasing power of an individual or person.
Mata-López and Tobón (2019) identified that advertisement expenses made by company
in order to promote sales of its goods or the services is considered as a significant factor which
determines the demand for services. The main purpose or objective of advertisement is inducing
he consumers in buying the product or availing services of the company. When the
advertisement resulted as successful, it causes a rise in the demand of the product or the services.
However, in case an advertisement is not found as effective then it causes decrease in the
demand.
Moreover, Alizadeh and Sriramula (2018) represented that there are various factor that
affects or influences profits and sales of the business involves level of competition, market
contestability & competition, Economic state, fashion, substitutes, success of advertising, cost
etc. degree of the competition is an important factor that determines the profit and helps in
increasing the profits and revenue by rising the price of the product. On other state, government
regulations might prevent the monopolies in abusing their respective power. Further, in terms of
the competition in market, if in case the market is very much competitive then profit would be
low as consumer would be buying from cheapest organizations.
Similarly, Khan (2017) viewed that successful advertising leads to rising demand that in
turn maximize revenue of the company and also the profits with higher market share and
demand. In case there are many substitutes and price of substitute is high then there will be