The general principle that 80% of a company's complaints are generated by 20% of its product or service issues is known as the Pareto concept.

Question

Quizplus · Accepted Answer

The statement is true. The Pareto concept, also known as the 80/20 rule, suggests that a minority (20%) of causes, inputs or efforts usually lead to a majority (80%) of results, outputs or rewards. In terms of business, it means that the majority of customer complaints are generated by a small number of product or service issues.

The General Principle That 80% of a Company's Complaints Are