What Is Causal Forecasting?

Re: What Is Causal Forecasting?

A strategy that involves the attempt to predict or forecast future events in the marketplace, based on the range of variables that are likely to influence the future movement within that market is called Causal forecasting. The idea behind this type of prediction is to determine what type of impact those anticipated variables will have on consumer demand, the type of pricing that the market will be able to support in the future, and what those changes would mean for the future of the company. This type of forecasting is helpful to companies in several ways, including the development of sales and advertising for the upcoming period.