Estimating Customer Demand
About This Chapter
Chapter 6 continues our review of the volume estimation section by explaining how customer demand can be generated through the two-step process of brand recognition and purchase intention. We also describe how customer profitability analysis and new media marketing activities may be helpful in optimizing levels of demand.
Customer demand is far more difficult to estimate than production capacity because most factors that influence consumer purchase decisions lie far outside of an organization’s control and influence. Nevertheless, some effort to quantify demand must be made in order to ensure that the goods and services that are produced may in fact be sold.
Estimating Customer Demand ...