In which of the following cases is building a database worthwhile for the company?
A) where the product is a once-in-a-lifetime purchase
B) where the company has a long relationship with its customers
C) where customers show little loyalty to a brand
D) where the unit sale is very small
E) where the cost of gathering the information is high

Question

Quizplus · Accepted Answer

Building a database is worthwhile for a company when it has a long relationship with its customers. This is because the database can be used to track customer behavior, preferences, and purchase history over time, which can inform marketing and sales strategies and improve customer retention. In the other scenarios listed, such as where the product is a once-in-a-lifetime purchase, customers show little brand loyalty, or the unit sale is very small, building a database may not be as beneficial or cost-effective. In the case where the cost of gathering the information is high, the decision whether to build a database would depend on whether the potential benefits outweigh the costs.

In Which of the Following Cases Is Building a Database