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Illustrates the factors affecting Demand Forecasting

Illustrates the factors affecting Demand Forecasting?

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The given are the significant factors governing demand forecasting as follows:

1. Prevailing Business circumstances (per capita income, price level change and consumption pattern, employment and saving, investments).

2. Condition in the Industry (as Price product competition policy of firms in the industry).

3. Condition in the firm. (Like Plant capacity, significant policies of the firm and quality).

4. Factors influencing Export trade (as EXIM control, terms of export, EXIM policy and export finance)

5. Market behaviour

6. Sociological circumstances (as Population details, family lifecycle, age group, family income, education and social awareness.)

7.  Psychological circumstances (habit, taste, attitude, culture, perception and religion)

8. Competitive circumstance (as competitive condition in the industry).

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