The 80/20 rule is a concept that suggests
A)eighty percent of a firm's inventory should be readily available, and twenty percent should be reserved for emergency demand.
B)eighty percent of a firm's first time users will become brand loyal and twenty percent of the firm's first time users will use the product only once.
C)eighty percent of a firm's sales are obtained from twenty percent of its customers.
D)eighty percent of a firm's expenditures are tax deductible and twenty percent are not.
E)eighty percent of a firm's products will ultimately be sold at the original markup price, and twenty percent will not.

Question

Quizplus · Accepted Answer

The 80/20 rule, also known as the Pareto principle, suggests that 80% of a firm's sales come from 20% of its customers. This means that a small group of loyal customers are responsible for a large portion of a company's revenue. Understanding this principle can help businesses focus their efforts on retaining and nurturing these key customers.

The 80/20 Rule Is a Concept That Suggests