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By functional demand is meant that part of the demand for a commodity is due to the qualities inherent in the commodity itself.

On the contrary, non-functional demand is meant that portion of the demand for a consumers' good is due factors other than the qualities inherent in the commodity.

For more details on non-functional demand and external factors that influence non-functional demand see:

H. Leibenstein, 'Bandwagon, Snob and Veblen Effects in the theory of Consumer Demand', Quarterly journal of Economics(1950), pp. 183-207

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Q: What is a Functional Demand?
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