How does quantitative sales forecasting compare to qualitative sales forecasting?

Advantages of quantitative forecasting:-Numerical so easy to interpret and easy to analyse for example graphs can be made.-Data can be objectively interpreted and bias is often not an issue.Disadvantages of quantitative forecasting:-May lack detail.-Correlations do not show cause and effect, so may be hard to determine this.-Extrapolation may be reductionist – just because there has been a 5% increase in sales over the last few years, doesn’t mean this will continue. Many external factors.Advantages of qualitative forecasting:-Detail rich; lots of information to work with.-Open and unrestricted – for example brain storming discussions can allow for innovation.Disadvantages of qualitative forecasting:-May be issues of subjectivity in interpreting consumers’ answers.-Consumers may feel coerced into giving answers that the business wants to hear, so may lack validity (e.g. in test market, they may not like a product as much as they say).

Related Business Studies A Level answers

All answers ▸

What is the average rate of return ?


Describe each of the 4 elements of Tuckmans (1965) effective team development model.


What is meant by the term 'quantitative market research' ?


What are the main approaches to motivate a workforce?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo
Cookie Preferences