Define the three types of indicators as qualitative measures

Define the three types of indicators as qualitative measures of forecasting, provide at least one example of each type.

Solution

The three types of indicators as qualitative measures of forecasting are as follows:-

1) Scenario Writing:- Different assumptions are taken into consideration. Different future scenarios are generated with the business outcome of each and every set of assumption. These different scenarios are presented with the decision maker and he will decide which scenario will probably prevail the most.

2) Delphi technique:- It is one of the finest qualitative measure of forecasting. A group of experts is formed. Collective opinion of all the experts are taken into consideration. Finally consensus among group of experts is reached.

3) Market research:- Surveys and interviews are conducted to identify preferences of the customers. Questionaire is developed. It is an adequate method for short period demand forecasting.