--%>
Assignment Help - homework help

Explain the forecasting demand for a new product

Explain the forecasting demand for a new product.

E

Expert

Verified

Joel Dean has recommended six approaches for forecasting the demand for new products.

1. Evolutionary Approach: Under this method, for new product is estimated the demand on the basis of existing product. For example: Demand forecasting of colour Television upon the basis of demand for black and white Television.

2. Substitute Approach: For the new product the demand is analyzed like substitute for the existing product.

3. Growth curve Approach: On the origin of the development of an established product, for the new product the demand is estimated.

4. Opinion Polling Approach: Under this approach, for the new product demand is estimated through inquiring directly by the consumers using sample survey.

5. Sales Experience Approach: This demand is estimated through supplying the new product in a sample market and analyzing the instant response on that product within the market.

6. Vicarious Approach: Consumers reactions upon the new products are determined indirectly with the assist of specialized dealers.

   Related Questions in Managerial Economics

  • Q : Total supply of human capital in the

    Government policy is probably to help raise the total supply of human capital within the long run through: (w) increased public education and retraining programs. (x) minimum wage legislation. (y) laws prohibiting discrimination in employment. (z) str

    		•
  • Q : Determine the demand of auto-market

    Suppose that the auto market began at the intersection of S0 and D0 before people began to expect auto prices to rise in the close to future. How will it influence the auto market?: (1) No change. (2) Demand shifts to D2. (3) Demand sh

    		•
  • Q : Labor Supply Curves to Competitive Firms

    A price taker within the labor market: (w) can set the wage that this will pay for the labor this hires. (x) can set the wage at which this will supply the use of its labor. (y) doesn’t care what wage this pays or receives. (z) can’t influ

    		•
  • Q : Concavity in production possibilities

    Concavity (or bowed-out shapes) in production possibilities frontiers is described least fine by: (i) The law of diminishing returns. (ii) Resources being unevenly suited for various forms of production. (iii) Rising opportunity costs. (iv) Non-neutra

    		•
  • Q : Tax when price elasticity of

    When the ratio of the price elasticity of demand of a taxed good associate to its price elasticity of supply increases, tax is: (w) revenue will fall when tax rates are raised. (x) hikes will cause buyer's total outla

    		•
  • Q : Coupon Electrical utility is offering a

    Electrical utility is offering a security, known as zero coupon bond for sale. The terms of the security are investors pay 2337.57 today to purchase the security and the utility will pay the owner of the security 10000 in ten years time. The government is offering a similar security; except that thi

    		•
  • Q : Explain the forecasting demand for a

    Explain the forecasting demand for a new product.

    		•
  • Q : Wage rate by hiring labor by price taker

    A firm which is a price taker in the labor market will hire labor to the point where the wage rate is equals labor’s: (w) average output. (x) marginal revenue product. (y) average revenue product. (z) marginal physical product.<

    		•
  • Q : Derived Demand in Competitive Labor

    Derived demand refers to: (w) consumer demand for products, based on expected utility. (x) government demand for social goods, based upon tax revenue. (y) business demand for resources, based upon consumer demand for products. (z) supplier demand for

    		•
  • Q : Causes of Business Cycle Illustrates

    Illustrates the causes of business cycle?

    		•