Pratt Jr., Robert W.
September 1986
Marketing Science;Fall86, Vol. 5 Issue 4, p387
Academic Journal
In today's highly competitive consumer markets, buying intentions ratings play an important role in forecasting both demand and sales for virtually all new products and services. The specific contribution of intentions ratings, however, varies significantly by characteristics of both the product or service being forecast and the forecasting process itself. The point of the above is that the practical value of published buying intentions studies for forecasters of new products is heavily dependent on a complete understanding of the product and its target market. The research design and the key model assumptions related to willingness-to-pay and value are similar to those frequently used to study price and promotion elasticities for existing products. A generation of economists and marketers have invested substantial time and resources in measuring "willingness to spend" and using these measures to forecast sales by category, product and brand. For new products based on major technological innovation or requiring significant capital investment, initial consumer testing may be conducted several years prior to planned introduction.


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