Market research is an example of which type of forecasting method?

Market research is classified as a subjective method of forecasting because it relies on human judgment, opinions, and perceptions gathered from potential customers or market experts. This approach often involves surveys, interviews, and focus groups to collect qualitative data about consumer behavior and preferences.

The insights garnered from market research are inherently based on subjective interpretations of the gathered information. Analysts may take these insights and use them to predict future market trends or demand, but the fundamental nature of this type of forecasting is shaped by human perspectives rather than purely numerical data.

In contrast, quantitative methods utilize statistical techniques and historical data to establish predictions based on measurable factors. Analytical methods might involve the complex analysis of trends or data but do not directly apply to the subjective experience and insights obtained from market research. Understanding these distinctions clarifies why market research fits into the subjective category of forecasting methods.