Todd Harris and Associates, a New York sales promotion agency, discovered from analysis of its files that one-fifth of its clients accounted for more than three-quarters of its fees and commissions.This is an example of what classic concept?
A)the law of inverse proportions
B)the 80/20 rule
C)the survival of the fittest
D)the law of eminent domain
E)the primogeniture rule

Question

Quizplus · Accepted Answer

The 80/20 rule, also known as the Pareto principle, states that 80% of the effects come from 20% of the causes. In this case, it means that 20% of the clients are responsible for generating 80% of the agency's revenue. The Todd Harris and Associates example illustrates the application of the 80/20 rule in sales and marketing.

Todd Harris and Associates, a New York Sales Promotion Agency