A review of forecasting models for new products

Abstract

Purpose. The main objective of this article is to present an up-to-date review of new product forecasting techniques.

Design/methodology/approach: A systematic review of forecasting journals was carried out using the ISI-Web of Knowledge database. Several articles were retrieved and examined, and forecasting techniques relevant to this study were selected and assessed.

Findings: The strengths, weaknesses and applications of the main forecasting models are discussed to examine trends and set future challenges.

Research limitations/implications: A theoretical reference framework for forecasting techniques classified into judgmental, consumer/market research, cause-effect and artificial intelligence is proposed. Future research can assess these models qualitatively.

Practical implications: Companies are currently motivated to launch new products and thus attract new customers to expand their market share.  In order to reduce uncertainty and risk, many companies go to extra lengths to forecast sales accurately using several techniques.

Originality/value: This article outlines new lines of research on the improvement of new product performance which will aid managers in decision making and allow companies to sustain their competitive advantages in this challenging world.