|Demand forecasting means predicting demand for a product. The information regarding future demand is essential for planning scheduling production, purchase of raw materials, acquisition of finance and advertising. In order to accuracy as well as good forecasting, we can use various methods such as survey and statistical methods. Generally in short|
As mention question, satellite TV signal decoder is a short-term program. To know the peoples intention about the program, we can use survey method. Under survey method, there are various methods, such as:
- Consumer Survey Method: Direct interview method, complete enumeration method, sample survey method.
- Opinion Poll Method: Experts opinion method, Delphi method, Market Studies and experiments. In case of forecasting demand for satellite, TV signal decoder, we can use sample survey method.
Where, DP = Probable demand forecast
H = Census number of households from the relevant market.
HS = Number of households for the product.
AD = Average expected consumption by the reporting households.
This method is simpler, less costly and less time consuming that the comprehensive survey method. The households who plan their future purchases generally use this method to estimate short-term demand from business firms, government departments and agencies, and also. Business firms, government departments, and such other organization budget their expenditure at least for one year in advance. It is therefore possible for them to supply a fairly reliable estimate of their future purchases. Even the households making annual or periodic budget of their expenditure can provide reliable information about their purchases.
Sample survey method is widely used to forecast demand. However, this method has some limitations similar to those of complete enumeration or exhaustive survey method. The forecast therefore should not attribute reliability to the forecast more than warranted. Besides, sample survey method can be used to verify the demand forecast made by using quantitative or statistical methods. Some authors suggest that this method for forecasting rather than to replace it, this method can be gainfully used where market area is localized.
Sample survey method can be of greater use in forecasting where quantification of variables (e.g. feelings, opinion, expectations etc.) is not possible and where consumer’s behavior is subject to frequent changes. Satellite TV signal decoder forecasting is also a short and non-durable program in such a case sample survey method is only the appropriate non-statistical method.