- 2065 Chaitra · 4 marks
Short note: methods of demand analysis
Short answer
Demand analysis methods include survey methods like consumer surveys and expert opinion, statistical methods such as trend projection and regression, and others like test marketing and end-use analysis. Combining statistical models with survey judgment yields reliable forecasts.
Write a short note on methods of demand analysis.
Demand analysis studies the factors that determine demand and estimates present and future demand. It is used for sizing a project and deciding plant capacity. The methods are:
1. Survey (opinion) methods
- Consumer survey / market research: questionnaires and interviews with all or a sample of buyers on their buying intentions.
- Expert opinion / Delphi method: forecasts from sales staff, dealers or experts, refined over rounds.
- Useful for new products with no past data; depends on honest answers.
2. Statistical methods
- Trend projection by least squares, moving average or exponential smoothing, using past sales.
- Regression analysis: demand related to price, income and so on, Q = a + bP + cY.
- Correlation and econometric models.
- Objective; needs past data and assumes patterns continue.
3. Other methods
- Test marketing: sell the product in a small area and extend results.
- End-use (consumption level) method: demand for an intermediate product from the demand of the industries that use it.
- Barometric method: use leading indicators such as GDP, construction permits or cement sales.
- Market-share / competitor analysis.
A good forecast often combines a statistical method with judgment from surveys.
✓ Answer checked by Claude Opus 5.5 (high effort)
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