a Which is not a feature of the market experiment method of demand forecast? Forecast is based on past statistical data O Based on observed Consumer Behavior O Use of consumer clinics O Actual Market situations are created
Answers
Answer:
Demand forecasting is the art as well as the science of predicting the likely demand for a product or service in the future. This prediction is based on past behavior patterns and the continuing trends in the present. Hence, it is not simply guessing the future demand but is estimating the demand scientifically and objectively. Thus, there are various methods of demand forecasting which we will discuss here.
Methods of Demand Forecasting
There is no easy or simple formula to forecast the demand. Proper judgment along with the scientific formula is needed to correctly predict the future demand for a product or service. Some methods of demand forecasting are discussed below:
1] Survey of Buyer’s Choice
When the demand needs to be forecasted in the short run, say a year, then the most feasible method is to ask the customers directly that what are they intending to buy in the forthcoming time period. Thus, under this method, potential customers are directly interviewed. This survey can be done in any of the following ways: