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 these is true.

Question

Quizplus · Accepted Answer

The 80/20 rule, also known as the Pareto Principle, states that 80 percent of the effects come from 20 percent of the causes. In the case of business, this means that 80 percent of the revenue or profits come from 20 percent of the customers. Therefore, choice C is the best answer.

The 80/20 Rule Suggests That