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Question 46 - CSCP discussion

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Which of the following types of information would be an appropriate basis for a qualitative forecast?

A.
Leading indicators
Answers
A.
Leading indicators
B.
Market research data
Answers
B.
Market research data
C.
Order history
Answers
C.
Order history
D.
Shipment history
Answers
D.
Shipment history
Suggested answer: B

Explanation:

Qualitative forecasting techniques are often used when there is little to no historical data available, or when the situation involves a lot of uncertainty or rapid change. These methods rely on expert judgment, intuition, and qualitative data. Here's why market research data is appropriate for qualitative forecasting:

Expert Insights: Market research provides insights from industry experts, customer feedback, and market trends, which can be critical in understanding future demand.

Consumer Behavior: This data helps in predicting how consumer preferences and behaviors might change, which is especially useful for new products or entering new markets.

Competitive Analysis: Understanding competitor strategies and market conditions helps in making informed forecasts.

Qualitative Nature: Unlike order history or shipment history, which are quantitative, market research data involves qualitative analysis of market conditions and customer needs.

Therefore, market research data is a suitable basis for qualitative forecasting as it offers comprehensive insights into market dynamics and future trends.

Armstrong, J. S. (2001). Principles of Forecasting: A Handbook for Researchers and Practitioners. Springer.

Malhotra, N. K. (2010). Marketing Research: An Applied Orientation. Pearson.

asked 16/09/2024
Tyler Andringa
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