Rational pricing technique

A hypothetical product growth curve is illustrated in Figure 6.6. Clearly if the data available show exponential growth care must be taken in projecting over a long period. Techniques have been developed to modify the simple extrapolation but require extensive data. The projection of past data can be improved by combining with detailed user surveys of major product outlets to provide a more rational basis for estimated demand. All methods of assessing future markets assume the absence of major perturbations, and events such as the OPEC actions on oil prices in 1973 and 1979 can make nonsense of any forecasts. 

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