Question

Which of the following sales forecasting techniques would generally be most suitable for estimating sales of a new product?

a) Executive judgment
b) Customer surveys
c) Time series analysis
d) Market tests
e) Regression methods

Answer 1

Market tests would generally be the most suitable sales forecasting technique for estimating sales of a new product.

Step-by-step explanation:

The most suitable sales forecasting technique for estimating sales of a new product would generally be market tests. Market tests involve introducing the new product to a small, representative sample of the target market and recording actual sales. This technique provides more accurate data about consumer preferences and behaviors compared to other techniques.

For example, if a company is launching a new smartphone, they might conduct market tests by releasing a limited number of devices in specific locations and tracking sales. This would allow the company to gather real-world data on consumer demand and make more informed sales forecasts.