Managerial Economics Demand Forecasting.pptx

Demand Forcasting Chapter

1. Demand forecasting

2. Demand forecasting To estimate/predict or anticipate future demand for goods and services on the basis of past information/ examining the past.

3. Methods of demand forecasting Survey methods Consumer’s opinion survey Opinion poll method Expert opinion method Statistical methods Trend projection method Regression and correlation method Barometric method

4. Survey method : direct contact with consumer to ask about their intentions for a product demand and future purchase plans. It involves further two methods such as complete enumeration method at which all of the potential consumers/ customers are asked about the product purchase plans and the second method is sample survey method which is performed when the population is very large and a sample of consumers are selected for interview purpose.

5. b) Opinion poll method: to collect opinions from people having market info such as sale representatives, sale executives, marketing consultants and professionals. c) Experts opinion method: information about the market demand from the professional market experts and consultants on the basis of their expertise and experience for future demand

6. Trend projection: to predict the future value of demand on the basis of time series data. Tend projection is composed of secular trend, seasonal trend and cyclical trend i i. Regression and correlation method: to utilize the simple regression and correlations for estimating the future demand for a product. i ii. Barometric method: predicting the demand on the basis of index of relevant economic indicators