The 80/20 principle states that:
A)market segmentation succeeds 80 percent of the time and fails the remaining 20 percent of the time.
B)roughly 80 percent of total product sales come from 20 percent of customers.
C)nearly 80 percent of the market segment is generally tapped within first 10 years of the introduction of the product, and 20 percent remains unreached.
D)80 percent of the market can be segmented, and 20 percent cannot.

Question

Quizplus · Accepted Answer

The 80/20 principle, also known as the Pareto principle, states that roughly 80 percent of total results come from 20 percent of effort or inputs. In the context of marketing, it means that approximately 80 percent of a company's sales come from 20 percent of their customers. This principle can be used to focus resources on the most profitable customers and products.

The 80/20 Principle States That