What is demand shaping?

• A. Forecasting demand using historical data.
• B. Activities to influence demand patterns, such as promotions and pricing.
• C. Maintaining constant demand regardless of market changes.
• D. Producing goods ahead of demand to build inventory.

Answer: (B)

Demand shaping means actively influencing when and how much customers buy by using actions like pricing, promotions, product availability, and messaging. It’s about steering demand patterns rather than just predicting them or building inventory in advance. For example, offering a time-limited discount on a slower item or bundling products to encourage larger purchases demonstrates shaping demand. This differs from forecasting, which is about predicting future demand from data; it also differs from keeping demand constant or producing ahead to stock up, which are supply-focused approaches rather than influencing buyer behavior.