Is It Always Worthwhile Gathering More Information About Customer Needs

Multiple Choice

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.