Is it always worthwhile gathering more information about customer needs and preferences?
A)Yes,the cost of gathering information is always negligible.
B)Yes,provided that this information is relevant to the firm's decisions.
C)No,a good rule of thumb is not to spend on information more than 2% of what is at stake in the decision.
D)No,the value of additional information must be compared to its additional cost.
E)Yes,gathering more information enables the concerned firm to forecast the demand for its product more accurately.

Question

Quizplus · Accepted Answer

It is not always worthwhile to gather more information about customer needs and preferences. The value of additional information must be compared to its additional cost, as sometimes the cost of gathering information may outweigh the benefits. Therefore, it is important to consider the cost-benefit analysis before gathering more information.

Is It Always Worthwhile Gathering More Information About Customer Needs