Beats by Dr. Dre (Beats), is a leading audio brand founded in 2006 by Dr. Dre and Jimmy Iovine and was acquired by Apple Inc. in 2014. Beats has become a favorite brand among consumers who enjoy listening to music and somewhat of a status brand. The company markets a variety of products including headphones, earphones, speakers, and accessories. The product managers for the Beats product groups are involved in the sales forecast process for their products which is important to ensuring strong support for retailers and customers as well as to achieve sales objectives. The product managers hire experts create initial forecasts, submit them to the company for averaging, and have the results returned to them so they can make individual refined forecasts. The procedure is iterative and may be repeated several times until the experts who are working independently reach a consensus. The process typically results in a very reliable sales forecast. What type of sales forecasting method do the product managers of Beats use?
A) Delphi technique
B) trend analysis
C) expert forecasting survey
D) executive judgment

Question

Quizplus · Accepted Answer

The product managers of Beats use the Delphi technique for their sales forecasting process, as they hire experts who work independently and submit their forecasts to be averaged and refined until a consensus is reached. This iterative process results in a reliable sales forecast.