chapter  9
10 Pages

MODELS BASED ON LEARNED BEHAVIOR—MARKOV MODEL AND INDIRECT METHODS

The forecasting methods we have discussed to date were for the most part based on the use of historical data. They did not consider how consumers behave in making purchase decisions in the marketplace. In this section, we will present a model based on learned behavior, the Markov model, along with indirect methods of sales forecasting, the use of economic indicators, input-output analysis, survey techniques, and econometric forecasting.