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WHAT IS LATENT DEMAND AND THE P.I.E.?

The concept of latent demand is rather subtle. The term latent typically refers to something that is dormant, not observable, or not yet realized Demand is the notion of an economic quantity that a target population or market requires under different assumptions of price, quality, and distribution, among other factors. Latent demand, therefore, is commonly defined by economists as the industry earnings of a market when that market becomes accessible and attractive to serve by competing firms. It is a measure, therefore, of potential industry earnings (P.I.E.) or total revenues (not profit) if a market is served in an efficient manner. It is typically expressed as the total revenues potentially extracted by firms. The “market” is defined at a given level in the value chain. There can be latent demand at the retail level, at the wholesale level, the manufacturing level, and the raw materials level (the P.I.E. of higher levels of the value chain being always smaller than the P.I.E. of levels at lower levels of the same value chain, assuming all levels maintain minimum profitability).

The latent demand for effervescent-type, suppositories, and other internal analgesics and antipyretics is not actual or historic sales. Nor is latent demand future sales. In fact, latent demand can be lower either lower or higher than actual sales if a market is inefficient (i.e., not representative of relatively competitive levels). Inefficiencies arise from a number of factors, including the lack of international openness, cultural barriers to consumption, regulations, and cartel-like behavior on the part of firms. In general, however, latent demand is typically larger than actual sales in a country market.

For reasons discussed later, this report does not consider the notion of “unit quantities”, only total latent revenues (i.e., a calculation of price times quantity is never made, though one is impl.
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This digital document is an article from Pediatric Nursing, published by Jannetti Publications, Inc. on January 1, 2003. The length of the article is 6476 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the author: Do nurses manage fevers of children hospitalized for a febrile illness ritualistically or rationally? Nurses recorded temperatures more frequently during the first 8 hours in the ward with a mean frequency of 13.36 (SD = 4.76, range 5 to 24) during the first 24 hours following admission. In the majority of cases, there was a strong second hourly pattern of temperature monitoring according to the time of day (e.g., 0600 hr, 0800 hrs, 1000 hr). Seventy-six percent (51) of the children received at least one antipyretic. The mean temperature when antipyretics were administered was 38.34[degrees]C (SD = 1.02, range 35.9[degrees]C to 40.8[degrees]C). The highest antipyretic administration occurred during the daytime, and the highest temperature recording occurred during the nighttime. Antipyretic administration and mean temperatures generally followed a similar pattern, except at 0800 and 1600 hours when antipyretic administration was high and mean temperatures low. This study revealed a need to further investigate the knowledge, attitudes, and decision-making criteria of nurses toward fever management.

Citation Details
Title: Fever management audit: Australian nurses' antipyretic usage.
Author: Helen E. Edwards
Publication:Pediatric Nursing (Refereed)
Date: January 1, 2003
Publisher: Jannetti Publications, Inc.
Volume: 29 Issue: 1 Page: 31(7)

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This digital document is an article from Pediatric News, published by International Medical News Group on May 1, 2002. The length of the article is 643 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: Persistent fevers may not signal serious illness. (Consider Child's Appearance).
Author: Sharon Worcester
Publication:Pediatric News (Magazine/Journal)
Date: May 1, 2002
Publisher: International Medical News Group
Volume: 36 Issue: 5 Page: 14(1)

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This study covers the latent demand outlook for opium and opium-derivative narcotic internal analgesic and antipyretic pharmaceutical preparations across the regions of Greater China, including provinces, autonomous regions (Guangxi, Nei Mongol, Ningxia, Xinjiang, Xizang - Tibet), municipalities (Beijing, Chongqing, Shanghai, and Tianjin), special administrative regions (Hong Kong and Macau), and Taiwan (all hereafter referred to as “regions”). Latent demand (in millions of U.S. dollars), or potential industry earnings (P.I.E.) estimates are given across some 1,100 cities in Greater China. For each major city in question, the percent share the city is of the region and of Greater China is reported. Each major city is defined as an area of “economic population”, as opposed to the demographic population within a legal geographic boundary. For many cities, the economic population is much larger that the population within the city limits; this is especially true for the cities of the Western regions. For the coastal regions, cities which are close to other major cities or which represent, by themselves, a high percent of the regional population, actual city-level population is closer to the economic population (e.g. in Beijing). Based on this “economic” definition of population, comparative benchmarks allow the reader to quickly gauge a city’s marketing and distribution value vis-à-vis others. This exercise is quite useful for persons setting up distribution centers or sales force strategies. Using econometric models which project fundamental economic dynamics within each region and city of influence, latent demand estimates are created for opium and opium-derivative narcotic internal analgesic and antipyretic pharmaceutical preparations. This report does not discuss the specific players in the market serving the latent demand, nor specific details at the product level. The study also does not consider short-term cyclicalities that might affect realized sales. The study, therefore, is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved..
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This digital document is an article from Family Practice News, published by International Medical News Group on March 1, 2004. The length of the article is 949 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: Fevers often overtreated by physicians, parents: no reason to alternate antipyretics.(Children's Health)
Author: Miriam E. Tucker
Publication:Family Practice News (Magazine/Journal)
Date: March 1, 2004
Publisher: International Medical News Group
Volume: 34 Issue: 5 Page: 103(1)

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This study covers the latent demand outlook for effervescent-type, suppositories, and other internal analgesics and antipyretics across the prefectures and cities of Japan. Latent demand (in millions of U.S. dollars), or potential industry earnings (P.I.E.) estimates are given across some 1,000 cities in Japan. For each city in question, the percent share the city is of it’s prefecture and of Japan is reported. These comparative benchmarks allow the reader to quickly gauge a city vis-à-vis others. This statistical approach can prove very useful to distribution and/or sales force strategies. Using econometric models which project fundamental economic dynamics within each prefecture and city, latent demand estimates are created for effervescent-type, suppositories, and other internal analgesics and antipyretics. This report does not discuss the specific players in the market serving the latent demand, nor specific details at the product level. The study also does not consider short-term cyclicalities that might affect realized sales. The study, therefore, is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved..
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This digital document is an article from Phytomedicine: International Journal of Phytotherapy & Phytopharmacology, published by Urban & Fischer Verlag on December 1, 2002. The length of the article is 2121 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: Evaluation of anti-pyretic potential of Ficus racemosa bark.
Author: R. Bhaskara Rao
Publication:Phytomedicine: International Journal of Phytotherapy & Phytopharmacology (Refereed)
Date: December 1, 2002
Publisher: Urban & Fischer Verlag
Volume: 9 Issue: 8 Page: 731(3)

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