Factors that affect the process of demand forecasting are as follows:The first factor is the type of good/ service for which the forecast is being done. The past history (whether the product is new or well established) affects consumer behavior.Level of Competition: In a highly competitive world the demand is also influenced by the novel strategies (e.g. discounts, etc.) of a competing brand.Price of the Product: If the manufacturer intends to increase or decrease the product price, this will also sway the consumer behavior towards or away from the manufacturer.Lastly, the use of technology and the economic standpoint of the market (such as a global recession or for example pandemic) can change the consumer needs and therefore the product demand.