Which statement best defines demand shaping?

Which statement best defines demand shaping?

• A. Forecasting demand using historical data.
• B. Strategies to reduce supply chain costs by outsourcing.
• C. Actions to influence demand patterns through pricing, promotions, and product design to better fit supply.
• D. Monitoring supplier performance.

Answer: (C)

Demand shaping is about actively influencing how much product customers want, so demand fits what the supply chain can realistically deliver. It uses market levers like pricing, promotions, and product design to steer demand in a direction that matches available capacity and inventory. The best statement captures this idea by describing actions to influence demand patterns through pricing, promotions, and product design to better fit supply. Other activities—forecasting demand from historical data, outsourcing to cut costs, or monitoring supplier performance—focus on predicting demand, cutting costs, or tracking suppliers, rather than proactively molding demand to align with supply.

Demand shaping is about actively influencing how much product customers want, so demand fits what the supply chain can realistically deliver. It uses market levers like pricing, promotions, and product design to steer demand in a direction that matches available capacity and inventory. The best statement captures this idea by describing actions to influence demand patterns through pricing, promotions, and product design to better fit supply.

Other activities—forecasting demand from historical data, outsourcing to cut costs, or monitoring supplier performance—focus on predicting demand, cutting costs, or tracking suppliers, rather than proactively molding demand to align with supply.