Final answer:
Customer surveys may not be appropriate for forecasting sales in firms with few customers due to their non-representative nature and the inherent biases that come with small sample sizes, self-selected samples, and incentive-driven responses.
Step-by-step explanation:
True or False, customer surveys as a means of forecasting sales are not appropriate for a firm that has relatively few customers, is generally considered true. Surveys might not be representative of the actual population if the sample size is too small. Additionally, certain methodological issues such as self-selected samples, inaccurate responses, and non-response can lead to biased results, which is a significant concern when the customer base is limited. The validity of forecasting through surveys is dependent on the quality of the data collected, not just the quantity.
Surveys return biased data if participants self-select or if incentives encourage participation that may not reflect the true customer sentiments. Moreover, in a small customer base, a mail survey's reach is limited and not cost-effective. Large samples, while more accurate, might not be necessary or feasible for small firms, negating the benefit of statistical forecasting from survey results. Ultimately, surveys as a forecasting tool must be critically evaluated against the backdrop of available customers and the specific nuances of the targeted market sector.