Definition: Qualitative forecasting refers to the process of predicting future events or trends based on non-numerical data and subjective judgment.
Unlike quantitative forecasting, which relies on statistical and mathematical models, qualitative forecasting leverages insights from experts, historical patterns, and market intuition to make predictions.
Qualitative forecasting is widely used in industries where quantitative data is limited or less reliable. It is particularly valuable in new product development, strategic planning, and market entry strategies. By incorporating expert insights and market research, organizations can better anticipate changes and make informed decisions.
While qualitative forecasting provides valuable insights, it also has limitations. The subjective nature of the data can lead to biases and inconsistencies in predictions. Additionally, relying heavily on expert opinions may not always reflect broader market trends, making it essential to complement qualitative methods with quantitative data when possible.
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