Scenario 6.1 Use the following to answer the questions.
Angels Kids Spa offers various treatments designed to appeal to the younger customer. Treatment options include manicures, pedicures, facials, tea parties, and dress up photos. Parents can even purchase a birthday party package. Currently, Angels offers its services only to girls under the age of 14. Originally begun in Delaware, Angels is considering opening its spa/salons in other parts of the country and is planning to expand its offerings to girls aged 14 to 17. The company realizes that some changes may be needed. For example, management wants to find out if the older girls will be interested in their birthday party and tea party services.
Refer to Scenario 6.1. What method should Angels use to forecast sales in new regions?
A) Sales force survey
B) Time series analysis
C) Correlation method
D) Market test
E) Regression analysis

Question

Quizplus · Accepted Answer

The best method for Angels to forecast sales in new regions would be a market test. This would involve opening a new spa/salon in a selected region and measuring the success of the business in that area. This would provide valuable insights into the demand for the services offered by Angels in that particular region. A market test would also help Angels to identify any potential problems or issues that may arise when expanding to a new region, allowing the company to make any necessary adjustments before a full rollout.