What determines whether the sales forecasting process is direct or indirect?
A)the industry orientation of the firm
B)the nature of the predicting variable
C)the ultimate goal of the entrepreneur
D)the marketing philosophy of the company

Question

Quizplus · Accepted Answer

The nature of the predicting variable, which refers to the type of data used to predict future sales, is the main factor that determines whether the sales forecasting process is direct or indirect. Direct forecasting relies on historical sales data or customer surveys, while indirect forecasting uses proxy variables such as economic indicators, demographic data, or industry trends to estimate future sales.

What Determines Whether the Sales Forecasting Process Is Direct or Indirect