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 firm to forecast demand more accurately.

Question

Quizplus · Accepted Answer

While gathering more information about customer needs and preferences may be helpful, it is important to consider the cost of gathering that additional information. The value of the additional information must be considered against its cost to determine whether or not it is worthwhile to gather more information. This may mean that it is not always worthwhile to gather more information, depending on the cost of doing so. Therefore, option D is correct.

Is It Always Worthwhile Gathering More Information About Customer Needs