In which scenario are qualitative techniques most appropriately applied?

Qualitative techniques are most appropriately applied in scenarios where data is limited or when the future is uncertain and cannot be easily predicted through numerical data alone. Pyramid forecasting, which involves gathering insights from various levels within an organization or among different market segments to form a comprehensive demand forecast, often requires qualitative input from managers and sales teams who have a deeper understanding of market conditions and consumer behavior.

This method relies on expert judgment, intuition, and experience rather than strictly historical data, making it particularly useful in situations where trends may not yet be established or where existing quantitative data may not be reliable. Other options, such as determining a seasonal forecast or extrapolating level data, typically rely more heavily on historical numerical data and trend analysis, which are better suited to quantitative forecasting techniques. Additionally, while qualitative techniques can play a role in detecting changes in demand, the integration of quantitative data often provides a more reliable analysis in those scenarios.