Describe the uses and limitations of opinion poll method of demand forecasting
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Definition: The Opinion Poll Methods are used to collect opinions of those who possess the knowledge about the market, such as sales representatives, professional marketing experts, sales executives and marketing consultants.
(1) It is difficult to find out an appropriate economic indicator.
(2) For few products it is not good, as no past data are available.
(3) This method of forecasting is best suited where relationship of demand with a particular indicator is characterised by a Time Lag, such as construction contracts will give consequence to demand for building materials with some amount of Time Lag.
But where the demand does not Lag behind the particular economic index, the utility is restricted because forecast may have to be based on projected economic index itself that may not result true.
(1) It is difficult to find out an appropriate economic indicator.
(2) For few products it is not good, as no past data are available.
(3) This method of forecasting is best suited where relationship of demand with a particular indicator is characterised by a Time Lag, such as construction contracts will give consequence to demand for building materials with some amount of Time Lag.
But where the demand does not Lag behind the particular economic index, the utility is restricted because forecast may have to be based on projected economic index itself that may not result true.
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