The 80/20 rule suggests that
A) 20 percent of marketing effort is wasted.
B) 80 percent of marketing effort is well implemented, but the remaining 20 percent is out of control.
C) 80 percent of the business comes from 20 percent of the customers.
D) it will take 80 percent more effort to get 20 percent more business.
E) None of the above is true.

Question

Quizplus · Accepted Answer

The 80/20 rule, also known as the Pareto Principle, states that 80 percent of the results come from 20 percent of the causes. In the context of business, this means that 80 percent of the business comes from 20 percent of the customers. Option A is incorrect, as the rule doesn't suggest that a percentage of marketing effort is wasted. Option B is incorrect, as it suggests that only 80 percent of marketing effort is well implemented, which is not necessarily true. Option D is incorrect, as it suggests that more effort will result in more business, which may not always be the case. Option E is incorrect, as the 80/20 rule is a widely acknowledged principle.

The 80/20 Rule Suggests That