Question

Derick works as a researcher and market analyst for a company. His current responsibility is to forecast the company's sales. He plans to
conduct a survey or Interviews, in which he will ask potential consumers about their savings and Investment plans, purchasing power, frequency
of purchases, plans to buy a particular product, and so on. Derick plans to arrive at the company's sales forecast based on the information that
he gains through this survey. Which method of sales forecasting does Derick intend to use?
OA.
market share method
B. buyer intentions method
O C.
Jury of executive opinion method
Delphi method
OD

Answer 1

Answer:

The correct answer is B) Buyer Intentions Method also known as Consumers' Buyer Plan.

Explanation:

This plan involves approaching customers to elicit information from them about their likelihood to make purchases during a particular period. It is most effective when the number of customers is small relative to the ability of the business to reach out to them.

A sales forecast based on this method has several demerits such as:

1. The customers may change their minds anytime without consultation with the business
2. It is  an uneconomical way to do a forecast when the client base is large
3. Predicting sales over the long-run using this method is statistically impossible

It has a few merits in that the information is obtained first hand from the consumers or buyer and the real intentions of the buyers at the time of collecting information is known.

Cheers!