Mgmt 6
Reply 1
Discuss the dangers of using consumer market data to forecast:
Using consumer data to forecast can be tricky. The economic conditions are constantly changing, which will change what consumers are willing to spend money on and what they need in their lives. When looking at the data for electric vehicles, consumers were very excited about the cars, but no very excited when the cars were actually available for sale. I think that for consumer data to be an accurate forecast model, it would have to be updated constantly to reflect the current economic conditions.
How have firms forecast the demand for other new products, like color TVs or HDTVs?
In order for firms to forecast the demand for new products, they need to stay ahead of the technology so that products are available for sale when a consumer wants it. Consumers are not shy about what they want in terms of technology, and what does not work for them. I think that firms also can forecast demand seasonally. Consumers are more likely to buy new televisions during the Christmas holiday season, the super bowl, and tax return times. If firms can have the latest technology release around these times they would be the most successful.
What could have an impact on buyer’s behavior?
The biggest impact on buyer behavior would have to be the economy. If the economy is in a recession and unemployment is at an all-time high, the purchase of luxury items such as electric cars and new TVs will most likely not be a high priority. Right now, during a global pandemic, people are protecting their money and saving it because who knows what will happen next.
Reply 2
1. Discuss the dangers of using consumer market data to forecast.
The possibility of inaccuracy of data presented, whether or not the data being presented is factual or unfounded. The article in the link provided clearly shows this in the graph originally from 2006 in comparison to the red dots on the graph today. Also needed to take into consideration is the economy, we cannot just assume that the economy will be the same today as it is tomorrow.
2. How have firms forecast the demand for other new products, like color TVs or HDTVs?
Firms have payed attention to what the consumer wants or needs and with today’s technology such as social networking, firms have been able to successfully reach the consumer with contextual marketing in order to reach those demands. Additionally, firms are able to research what the consumers inclination has been in the past and apply that to the future of what the consumer might want.
3. What could have a major impact on buyers’ behavior?
The current state of the economy. If the economy is good then the natural inclination of the consumer is to consume, if not, if it is a poor economy then the natural inclination of the consumer is to save for later. Purchasing power also comes into play as those with a lot of money have the ability to purchase while those who do not have a lot of money may opt not to purchase. Inflation and deflation will also play a part in the consumers buying behavior.