The 80/20 rule suggests that
A) around 80 percent of a firm's inventory should be readily available while 20 percent should be reserved for emergency demand.
B) nearly 80 percent of a firm's first-time users will become brand loyal while only 20 percent will use the product only once and then abandon it.
C) about 80 percent of a firm's sales are obtained from about 20 percent of its customers.
D) 80 percent of a firm's marketing program expenses are tax deductible while 20 percent are not.
E) about 80 percent of a firm's products will be sold to ultimate consumers while 20 percent go to organizational buyers.

Question

Quizplus · Accepted Answer

The 80/20 rule, also known as the Pareto Principle, suggests that roughly 80% of a firm's sales come from 20% of its customers.

The 80/20 Rule Suggests That