List and describe two types of qualitative forecasting methods

Answer 1

a . Jury of Executive Opinion: This type of qualitative forecasting is usually used to for long-range forecasting. An experienced group of senior management executives knowledgeable about the market, competitors, and the business environment develop a forecast in the hopes that their experience will provide them with a competitive advantage.

b. Delphi Method: Internal and external experts are surveyed about future events and long-term forecasts of demand. Following the survey, the answers are summarized, and this summary is sent back out to the experts. Experts are then able to modify their responses based on the summary. The process continues until a consensus is reached. Experts in this process never physically need to meet; they communicate only through their survey responses and their subsequent responses to the summaries.

c. Sales Force Composite: This qualitative forecasting method utilizes will the knowledge of the sales force. The sales force is seen to have recent and accurate information concerning the market and the needs of the customer. Based on this knowledge the sales force is asked to create a forecast to estimate the needs of the customer.

d. Consumer Survey: Surveys are administered to customers via phone, mail, Internet, or personal interviews. Customers are surveyed and issues such as future buying habits, new product ideas, and opinions about existing products. Using statistical tools and managerial judgment, a forecast is devised.