Question

Explain any four concepts of market.

Answer 1

The different concepts of market are explained below:

1. Place concept of market: The term market is usually understood to refer to a location where people buy and sell goods and services in exchange for money or money's worth. It is the location where buyers, sellers, and other intermediaries meet to exchange products or services. Place used to be very essential in defining market. However, in the age of information technology, the term'market' refers to more than just a location.
2. Commodity concept of market: The commodity notion of market places focus on the ‘buying and selling of goods or services’. The process of buying and selling commodities or services is fundamental in this concept, not the location of trade. The buyer and seller, as well as the commodity exchanged between them, play crucial roles in this process.
3. Exchange concept of market: The exchange concept of the market has placed focus on the exchange of goods or services between buyer and seller with free permission and mutual confidence. There should be no fraud, misrepresentation, coercion, or undue influence during the exchange. The exchange should be consensual between buyer and seller.
4. Area concept of market: The market's area notion is linked to the concept of trade. This concept emphasizes the freedom of buyers and sellers to bargain over the price of goods for buying and selling. The agreed-upon price between buyer and seller applies exclusively in a specific location. It is not necessary in this notion for the buyer and seller to meet in person. Buyers and sellers can regularly use various modern communication media to negotiate prices and exchange goods or services.
5. Demand or Customer concept of market: The customer is the market's king. One of the most significant market views is determining the customer's requirement or desire. The market might be studied from the standpoint of demand or the customer. The collective demand by potential consumers for any goods, according to this definition, is market.
6. Space or Digital concept of market: The emergence of information technology gave birth to a new market concept known as the Space or Digital Concept. New and sophisticated E-Commerce Portals and Mobile Applications make purchasing and selling simple and convenient for both buyers and sellers. Communication media such as the telephone, mobile phone, computer, Internet, etc. Have enabled direct contact between the buyer and the supplier. Customers may easily learn about the quality, features, price, terms and conditions, and other aspects of any company's products.
   The digital market can be referred to as the "Market which uses Information Technology for buying and selling of the products or services and facilitate communication of quality, features, price and terms of exchange among them"