Is it always worthwhile gathering more information about customer needs and pref

Question

Is it always worthwhile gathering more information about customer needs and preferences?

A. Yes, gathering more information enables the firm to forecast demand more accurately.

B. Yes, the cost of gathering information is always negligible.

C. No, the value of additional information must be compared to its additional cost.

D. No, a good rule of thumb is not to spend on information more than 2% of what is at stake in the decision.

E. Yes, provided that this information is relevant to the firm’s decisions.

Explanation / Answer

Answer:- It is always worthwhile gathering more information about customer needs and preferences

Correct Answer:- D:- Yes, gathering more information enables the firm to forecast demand more accutrately

Reason:- Larger the data collected, better will be the forecasting

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