Replacement Demand
Also called: remplace question
What is replacement demand?
Replacement demand is the need for customers who own a particular product to replace it with a new one. Wanting to make a replacement purchase can have several reasons. For example, because the product needs to be discarded because it is worn out or defective, or because a newer version is available on the market that offers additional benefits.
The presence of (and timely response to) replacement demand can generate sales from customers who (thanks to an initial purchase or a previous replacement purchase) already have a particular product. When customers purchase an additional one while the first one has not yet depreciated, such as a second television or second car, we speak of an additional purchase.
With consumables such as groceries, buying new copies of an item is not a replacement purchase but a repeat purchase.
