Schultz, Carsten D. - Archives of Data Science, Series A

Article Details

Title Forecasting Sales of Durable Goods ? Does Search Data Help?
Authors Schultz, Carsten D.
Year 2020
Volume 6(2)
Abstract Search data can be used to forecast macroeconomic measures. The present study extends this research direction by drawing on real sales data from a household panel over two years. Specifically, the study analyzes whether search data improves forecasts for seven products groups of durable goods. The forecast model also includes the average weekly price and a dummy for the Christmas season. Forecast accuracy is indeed improved when search data is included even for product groups that have a short information and search phase. The product groups, however, need to be chosen carefully, because some durable goods show no lag between online search and purchase.