--%>
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 : Income effect at a wage rate The

    The substitution effect of a small change within the wage rate for this worker most strongly goes beyond the income effect at a wage rate of: (1) $5 per hour. (2) $10 per hour. (3) $10 per hour to $25 per hour. (4) $2

    		•
  • Q : Recovery - Phases of business cycle

    Explain about the term Recovery in phases of business cycle.

    		•
  • Q : Average Variable Cost Profit

    A purely competitive firm which hires more workers while the value of the marginal product of labor increases above the competitively set wage rate will absolutely experience increases in its: (i) overhead costs. (ii) profit per unit.

    		•
  • Q : What are the main features of

    What are the main features of managerial economics?

    		•
  • Q : Increases in labor force participation

    When this purely competitive labor market is primarily in equilibrium at D0L, S0L, a move to equilibrium at D0L, S1L would be probably to follow from increases in: (w) rates of technological advance. (x) the cost of living. (y) labor force participati

    		•
  • Q : Pay the lowest wages in market

    Occupations along with the highest percentage of women workers tend to: (1) pay the highest wages. (2) need relatively more human capital and experience. (3) pay the lowest wages. (4) require very small human capital or experience.

  • Q : Explain about the signaling Signaling :

    Signaling: (w) attempts to finesse adverse selection. (x) involves behavior by agents to communicate special qualifications which will elicit the offer of a contract from a principal. (y) refers to potential employees obtaining skills, education or ex

    		•
  • 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 : Unitarily inelastic supply of labor

    Glynn’s supply of labor is unitarily inelastic while the wage rate increases by: (1) $10 per hour to $20 per hour. (2) $10 per hour to $50 per hour. (3) $20 per hour to $50 per hour. (4) $20 per hour to $80 per hour. (5) $80 per hour to $90 per

    		•
  • Q : Explain the target pricing briefly

    Explain the target pricing briefly.

    		•