Demand vacuum in

economics Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyzes ...

and

marketing Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emph ...

is the effect created by consumer

demand In economics, demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given time. The relationship between price and quantity demand is also called the demand curve. Demand for a specific item ...

on the supply chain. The term refers to an analogy whereby consumer demand for a product or service creates a "vacuum" at the end of the supply chain which "pulls" the product through the chain by causing the suppliers to provide more product. The marketing strategy of pull strategy aims to create a demand vacuum through advertising and promotion to the consumer. This is to be compared with push strategy that tries to push the product through the supply chain by promoting the product to sellers and encouraging them to carry it.Philip Kotler, Gary Armstron, ''Principles of Marketing'', p. 442, Pearson Education, 2010 .

Local shortages

A demand vacuum can cause a local shortage of a product when local demand is far exceeded by demand in

export An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is an ...

markets. The result is little or no availability of a product in its originating market.

References

Supply chain management Demand {{economic-term-stub