A qualitative forecasting technique well-suited for demand forecasts of a new product or service is the:
A)Delphi method.
B)build-up forecast.
C)life cycle analogy method.
D)patronage survey.

Question

Quizplus · Accepted Answer

The life cycle analogy method is well-suited for demand forecasts of a new product or service because it proposes that the demand for a new product or service will follow a similar pattern to the demand for similar existing products or services. This method involves identifying a product or service with a similar life cycle and using its sales pattern to forecast the sales of the new product or service. This approach can be useful when there is limited data available for a new product or service. The Delphi method involves soliciting opinions from a panel of experts, the build-up forecast involves estimating demand based on the individual components and factors that contribute to it, and the patronage survey involves obtaining feedback from potential customers on their intentions to purchase. While these techniques may be useful in some situations, they may not be as well-suited for demand forecasts of a new product or service.

A Qualitative Forecasting Technique Well-Suited for Demand Forecasts of a New