Gartner Research

Three Ways to Incorporate Consumer Shopping Decisions Into Demand Forecasting

Published: 23 May 2016

ID: G00302446

Analyst(s): Tom Enright

Summary

Consumers make decisions about what product to buy when their intended first-choice product is not available. This research advises retail demand planning leaders how to forecast demand in alignment with how consumers think about alternative purchases.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Adopt the Existing Methods of Promotional Demand Transfer to Manage Consumer Demand Transfer in Key Product Categories on an Ongoing Basis
  • Enhance Demand Forecasting Capabilities by Analyzing Product-Level Sales Patterns Supported by Alternative Product Hierarchies to Model Consumer Demand Transfer
  • Ensure That Demand Planning and Allocation Individuals Are Responsible for Managing Availability of Comparable Products Across Brands to Match How Consumers Consider Alternative Product Purchases

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