There are occasions when a firm should legitimately practice demarketing in order to manage its demand levels.

Question

Quizplus · Accepted Answer

Demarketing involves intentionally reducing demand for a product or service to manage supply constraints or to target specific segments of the market. It may be suitable for a firm to practice demarketing in situations where demand levels are exceeding the firm's capacity to deliver, where the product is harmful to certain segments of the market, or where the firm is looking to shift focus to other products or services. Therefore, it can be a legitimate strategy to manage demand levels under certain circumstances.

There Are Occasions When a Firm Should Legitimately Practice Demarketing