Pocket-knife collector Sam Penley decided to open The Knife Depot,a store that sells pocket knives and related paraphernalia.After 18 months in business,Sam has noticed that most of his sales are to the same small group of customers (about 40 people)even though he has records to show there are over 200 active pocket-knife collectors within a 50-mile radius of his store.Sam's retailing experience is supportive of the:
A) optimizer principle
B) min-max rule
C) majority fallacy
D) rule of demand
E) 80/20 principle

Question

Quizplus · Accepted Answer

The 80/20 principle proposes that a minority of a firm's customers purchase a majority of the volume of the product.

Pocket-Knife Collector Sam Penley Decided to Open the Knife Depot,a