The Impact of the Market Environment on the Subjective Revision of Short‐run Sales Forecasts: Some Preliminary Evidence

Abstract

The forecast revision process is shaped by the environment in terms of the nature of the revision activity and in terms of its perceived effectiveness. A study on forecast revision focuses on the variables that describe the market situation for a product and so shape the context within which sales forecasting takes place, using a study of manufacturing companies operating in the UK health care industry. The three most important environmental factors that influence the revision process are the number of competitors in the market, the degree of market concentration and the intensity of non‐price competition.

Citation

Diamantopoulos, A. and Mathews, B. (1986), "The Impact of the Market Environment on the Subjective Revision of Short‐run Sales Forecasts: Some Preliminary Evidence", Marketing Intelligence & Planning, Vol. 4 No. 4, pp. 46-59. https://doi.org/10.1108/eb045737