What are wants backed by purchasing power called?

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Wants backed by purchasing power are referred to as demands. This concept is crucial in understanding consumer behavior in international marketing.

When individuals express wants, they articulate their desires for particular products or services. However, these wants only become demands when consumers have the financial means to satisfy them. For instance, someone may want a luxury car; however, if they lack the financial resources to purchase it, that desire remains a want and doesn't translate into a demand.

In the realm of marketing, recognizing demands can help businesses tailor their offerings and strategies to meet the actual market's needs. Therefore, demand is an essential component of market analysis, as it reflects both consumer desires and their ability to fulfill those desires through purchasing power, creating opportunities for businesses to target their marketing efforts effectively.

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