Demand Forecasting
Demand Forecasting is the activity of estimating the quantity of a product or service that consumers will purchase. It involves techniques including both informal methods, such as educated guesses, and quantitative methods, such as the use of historical sales data or current data from test markets.

Multivariate Solutions uses demand forecasting in making pricing decisions, in assessing future capacity requirements, or in making decisions on whether to enter a new market.

Demand Forecasting Articles

I’ll Be Back – DVD Sales Forecasting demonstrates how a Monte Carlo simulation is used to assess the number of DVDs the client must purchase in order to begin renting to its customer database.

Monte Carlo Product Demand Forecast combining not only survey research results, but incorporates sales and marketing data from the client company as well.

Pricing and Revenue Monte Carlo Forecast Model reveals the ‘price point’ winner, not only of product demand at test price levels, but taking into account the estimated market area and fixed costs.

Donor Predictive CHAID Tree uses a classification tree method to box in most-likely donors to a political party.

Tacos in Tel Aviv, published in Quirk’s Marketing Research Review, demonstrates how a Monte Carlo simulation analyzed the primary survey research in a market forecast feasibility study about bringing a chain of upscale Mexican restaurants to Israel’s Silicon Valley.