Market, Demand Segments and Demand Bubbles

Symphonya: Emerging Issues in Management, No. 2, 2005, pp. 13-30

18 Pages Posted: 12 Feb 2013

See all articles by Margherita Corniani

Margherita Corniani

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS)

Date Written: 2005

Abstract

In scarcity markets, corporations use to consider the overall market demand as a group of homogeneous buyers. In controlled competition markets, companies stimulate non homogenous demand reactions to competitive supplies, by segmenting market demand. In over-supply markets, where instability is a key aspect in the supply-demand relationship, corporations activate demand bubbles, i.e. temporary client aggregation that is caused by the innovative supply configuration issued by a company. To create demand bubbles companies must have strong relationships with their stakeholders, and must invest in an advanced intangible assets system. Demand bubbles are the advanced reply to segmentation limits and are generated to grant temporary monopolistic competition conditions to corporations who create them.

Keywords: Market Demand, Demand Bubble, Global Competition, Over-Supply, Segmentation, Intangible Assets

JEL Classification: M00

Suggested Citation

Corniani, Margherita, Market, Demand Segments and Demand Bubbles (2005). Symphonya: Emerging Issues in Management, No. 2, 2005, pp. 13-30, Available at SSRN: https://ssrn.com/abstract=2215166

Margherita Corniani (Contact Author)

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milan, 20126
Italy

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