Underlying pattern of growth or decline, helps to predict sales in the future.
Looks at past performance of a variable such as sales and extends it into the future.
- Easy to carry out
- Could be inaccurate as future may be different to past
- Ignores qualitative factors such as tastes and fashions
Series of calculations designed to show underlying trend. The use of this should smooth out the impact of random variations.
Used to establish the relationship between 2 variables. Presented in a graphical format so uses visual presentation.
Testing product to limited part of a market in a specific geographical area to discover customer opinions and predict sales.
- gauge popularity
- gain opinions
- people may lie
- results may not be the same across the whole country