Question

What is a market boundary and how is it determined?

Answer 1

Market boundaries can be defined as market parameters which have specific categories of analogous practices which establish the virtual and limitations of a market within which particular exchange of performances are meant to be put into practice by a set of marketers.

In describing the market where the goods are to be compared, it is necessary to be precise, because the consumer specifications and the compulsory product characteristics are used to describe the functional unit which may vary from one market to another.

The market is where the item meets its consumer. Thus, consumers can express their demands on the product through transactions on the market, through which we can classify the compulsory product properties that are used to describe the functional unit. Therefore, in defining the demand for the commodity, it is important to be precise in terms of its delimitation in terms of space and time and in terms of the customers on the demand.