--%>

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 : Illustration of Human Capital On-job

    On-job training, there a college education, as well as leadership skills is all illustrations of: (w) financial capital. (x) human capital. (y) investment. (z) economic capital. Hey friends please give your opinion for the problem

  • Q : Value of the Marginal Product The value

    The value of marginal product of a variable resource is marginal physical product of it multiplied with: (w) the marginal revenue from the sale of its addition to output. (x) its cost. (y) the price of the product. (z) one.

  • Q : Define Cost Volume-Profit relationship

    Describe briefly Cost Volume-Profit relationship?

  • Q : Diminishing Returns in Marginal Revenue

    When a firm is experiencing diminishing returns as: (w) the marginal product of labor rises as more labor is hired. (x) the marginal revenue product of labor falls as more is hired. (y) the marginal resource cost of labor will be declining. (z) this w

  • Q : Wage rate and price of leisure

    Increases within the wage rate all the time: (w) lack impact on the relative price of leisure. (x) increase the relative price of leisure. (y) decrease the relative price of leisure. (z) increase the quantity of individual labor supplies.

  • Q : Illustrates the Expert Opinion method

    Illustrates the Expert Opinion method of Demand Forecasting?

  • Q : Higher Legal Minimum Wage Laws

    Enactment through the U.S. Congress of an extensively higher legal minimum wage would be probably to benefit: (i) American college professors. (ii) high-school dropouts in their teens. (iii) relatively unskilled foreign workers whose production is exp

  • Q : Most exceed the wages or specific

    Firms tend to offer wages which most greatly exceed the wages which workers would earn elsewhere to workers who have: (1) profit-sharing plans. (2) specific training. (3) prenuptial agreements. (4) non-compete clauses in their work contracts. (5) general training.

  • Q : Price and output decisions in

    Illustrates the price and output decisions in Monopolistic Competition?

  • Q : Slope downwards demand curves for Labor

    Derived demand curves for labor slope downwards since: (w) additional workers are usually less skilled and thus deserve lower wages. (x) when another resource is fixed, hiring more workers ultimately reduces output per hour worked. (y) higher wages us