Basic Types Of Forecasting Methods

1065 WordsJun 13, 20165 Pages
There are three basic types of forecasting methods that are commonly used. These methods are qualitative research, time series and projection, causal models. Qualitative research involves targeting specific audiences, focus groups through interviewing. This method takes into account information received from surveys or interviews that has being carried out. This method does not take into account past behaviors, derives their conclusion from the general data collected during the interview process. The results gotten from this type of forecasting method are usually more descriptive rather than predictive. This method involves in-depth interviews with individuals, discussion groups which usually involves two to ten participants, consumer surveys and so on. This survey can be done via the internet, in-person or over the phone. This method is usually used when the data is scare. A scenario where this type of method can be used is when a product is first introduced into the market. The company can use this method as a way to obtain human judgement, their rating of the product and willingness to purchase the product to turn the qualitative date received into quantitative estimates. The primarily purpose of this method is to bring together the information received, which applies to the factors being estimated in a logical and systematical fashion. This type of forecasting techniques are regularly used in the new technology sector, where the growth of a product idea may require

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