Machine or Psychology Predicts Consumer Behavior Better

Some consumption psychologists feel sales have become less predictable. In general, sales forecasts based on historical patterns in time series have become less accurate and hence less useful in the past year in many industries, not just these traditionally served by revenue management. Does forecast accuracy easily? For some revenue managers may be not too much, in some businesses prices are set by reference to the main competitors and forecasts have limited impact on operating and...
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Some consumption psychologists feel sales have become less predictable. In general, sales forecasts based on historical patterns in time series have become less accurate and hence less useful in the past year in many industries, not just these traditionally served by revenue management. Does forecast accuracy easily? For some revenue managers may be not too much, in some businesses prices are set by reference to the main competitors and forecasts have limited impact on operating and decisions about capacity. Marketing forecasting is aim to setting prices, maximizing revenue and managing operations.However, forecast accuracy is very important to find why changing consumer attitudes and the implications for customer segmentation and forecasting of buying behaviors are not just relevant to revenue management. They are also fundamental to sales, marketing , brand management, customer loyalty, product design and beyond. Perhaps it has an opportunity for revenue managers to take a lead in influencing thinking of their colleagues in these areas. Some consumption psychologists forecast the future, who concern the historical data of companies collection before the recession, it can no longer be applied to forecast consumer behavior during the recession or after. At the opposite extreme, companies can simply continue to between auto prediction system to predict when the market stability will return soon and how to influence consumer behavior.Sales are likely to depend on the economic situation, the competition and consumer behavior. However, these are external environmental factor to influence consumption of behavior. If it is possible to separate out these effects, then the forecasting model can take account of them by either building the economy/market into the model or segmenting consumers in an economy/market invariant way. External data, for example on the economic situation can also provide a good indicator of future sales. For example, internet ( online) web site research technology is one possibility for combining and processing data from different sources on the web using automated tools. If buying behavior is changing and every consumer demand is becoming elastic, not only to increase revenue, but also to improve knowledge of the customers. For example, online auctions are mainly used in the travel and hospitality industries for offloading surplus capacity have been shown when facing only uncertain consumer demand. However, analyzing external economy environment factor is not effective to minimize risk to the sellers. Because sale forecasts are never going to be completely accurate and there is an argument for moving the focus away from being smarter with existing data towards making the business less dependent on sale forecasts. For example, taking close look at increasing flexibility in the supply chain or operations or re-examine the strategy for setting price.