Train collectors Jack McCoy and Sandro Dias have decided to open a store that sells train memorabilia--everything from toy train sets to full-sized railroad signs.After 18 months in business,they have noticed most of their sales are to the same small group of customers (about 40 people)even though they have records to show there are over 200 active train collectors within a 50-mile radius of their store.Their 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.

Train Collectors Jack McCoy and Sandro Dias Have Decided to Open