In each of the following scenarios, indicate which type of forecasting model, qualitative or quantitative, would likely be most suitable and feasible for the situation.
1. Highton Department Stores is considering whether to add cafés to the interior of its stores. It does not currently have any cafés in any of its locations. It is conducting customer surveys on-site at its stores to find out if they would use an in-store café.
2. Traitown-Meger Machinery is trying to predict its sales for next year. It has 10 years of sales history data and its products’ sales trends and growth rates seem to be stable.
3. Bowerston Elements is trying to predict its sales for next year. Its products are subject to fluctuating demand and changing trends. It has 10 years of sales data, and it has data for other factors that contribute to the sales levels of its products including economic outlook data and customer survey data.
4. Kinder-Watson Electronics has developed a new type of enhanced smart eyewear. It has not produced eyewear in the past, so it has no existing sales data for comparison. It intends to use consumer focus groups to inform its sales forecast for the eyewear.
5. Papillion Stores Company has gathered 10 years of sales data. In addition, it has gathered data related to those sales transactions, including holidays, locations, and marketing promotions. Since its stores are located in outdoor shopping areas and weather does impact shopping, it also has gathered information on weather conditions. It wants to build a sales forecast model for staffing purposes.
6. Hudson Corporation has gathered a panel of cycling experts to help with predicting sales of its new electric bike. The experts will work together to form a consensus for the sales forecast.