Making Decisions Based on Demand and Forecasting”

Assignment 1 “Making Decisions Based on Demand and Forecasting”

Tiffany L. Shelby

Strayer University

ECO 550 – Managerial Economics and Globalization

October 22, 2013

Making Decisions Based on Demand and Forecasting

Dr. Samuel Gooding

If I were a marketing manager for my community of Northwest Houston Texas, I would conduct research about the demographics in my community and determine the important variables. My study would be based on demand, regression, and forecasting. I would directly reflect the need of a new Pizza place in the neighborhood and conduct a demand analysis and forecast the information.

There are various variables that are relevant to a company’s major business decisions and success. Advertising is one of the most important because if there is a multitude of businesses in the area that are all vying for the same consumer, how you get your new product out there in the open is very important. Independent variable or experimental variables is the variable that is often manipulated in the experiment, because it shows the effect on the dependent variable. The response variable that can also be known as the dependent variable is the variable that is being watched. If you change the independent variable is causes a change to the dependent variable, which is the purpose of the study. When trying to conduct a demand analysis the use of demographics (income level, gender, race, location, and family size) is very essential when formulating your target of consumer profiles.

There are many different variables to take into account when making a decision of whether the pizza company should establish a presence in your community or not. The first variable that I used in completing my demand analysis was to get the average cost of a pizza pie in northwest Houston. Northwest Houston has a lot of different pizzerias in the community so price will more than likely pay a factor in the success of a new coming business. The second variable that I take into...