Importance of Demand Estimation
ECON600 discussion
Why is knowing (or estimating) the product demand so crucial for a firm?
In your response, include an example of a business that has suffered from poorly estimating the demand of its products. Evaluate how or why the business made such a mistake.
To keep our discussion more interesting, please use examples that are not from our textbook.
Answer preview
Demand estimation involves the prediction of how the demand for products or services will be in the future depending on customer behaviors. Estimating product demand is crucial in a firm because it supports strategic planning. After estimating how the future demand will look like, a firm can decide on the best strategies to implement to meet the projected customer demand. For example, if the firm estimates that the future demand for a certain product is promising, managers can decide to increase…
(300 words)