Question

Customer demand uncertainty refers to which of the following?

a) the difficulty of predicting which particular customers will purchase a product
b) customers' struggles of choosing between different products
c) the challenge associated with anticipating how much of a product customers will buy in a specific time period
d) none of the above

Answer 1

Customer demand uncertainty is about predicting how much of a product customers will buy in a specific period, which can be complicated by imperfect information about product qualities.

Step-by-step explanation:

Customer demand uncertainty refers to the challenge associated with anticipating how much of a product customers will buy in a specific time period. This is part of a larger concept of imperfect information, where either the buyer, the seller, or both, may be less than 100% certain about the qualities of what they are buying or selling.

Imperfect information can cause significant issues in the market by making it difficult for buyers to determine the quality of products and for sellers of high-quality goods to receive a fair price due to these uncertainties.