Scenario 6.1 Use the following to answer the questions.Lil' Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Currently, Lil' Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Lil' Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services.
-Refer to Scenario 6.1. What method should Lil' Angels use to forecast sales in new regions?
A)Sales force survey
B)Time series analysis
C)Correlation method
D)Market test
E)Regression analysis

Question

Quizplus · Accepted Answer

Lil' Angels should use a market test to forecast sales in new regions. This will involve opening a test location in the new market and measuring customer response to the different treatments and services offered. This will give the company an idea of the demand for their services in the new region and help them make informed decisions about expanding their business.