When we plot the cost to serve versus net price paid by the customer for an industrial packaging materials supplier, this percentage of customers can be classified as "aggressive."
A) 10%
B) 25%
C) 31%
D) 40%
E) 46%

Question

Quizplus · Accepted Answer

When the cost to serve is plotted against the net price paid by customers, the portion of customers that fall in the top left quadrant (low net price paid but high cost to serve) are considered to be aggressive. According to the question, this industrial packaging materials supplier is likely facing aggressive customers, and the option that closely matches the percentage of such customers is 31%, which is given in option C.

When We Plot the Cost to Serve Versus Net Price