Which of the Following Statements Is FALSE Regarding the Use

question 25

Multiple Choice

Which of the following statements is FALSE regarding the use of the 80/20 rule in managing customer relationships?

• A) Advances in technology and data collection techniques allow firms to profile customers in real time.
• B) Twenty percent of customers provide 80 percent of business profits.
• C) Some customers are too expensive to keep given the low level of profits that they generate.
• D) The 20 percent of customers in the bottom tier should be fired so the firm can focus on its top customers.
• E) The firm's top customers are the most obvious candidates for retention strategies.

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Definitions:

Writ of Certiorari

A legal order issued by a higher court to review the decision and proceedings of a lower court.

Offer of Proof

A legal procedure in a trial where a party outlines what evidence would show if it were allowed, often used after an objection to evidence has been sustained.

Class Action

A lawsuit filed by one or more plaintiffs on behalf of a larger group of people who are similarly affected by the same issue.

Representative Plaintiff

An individual in a class action lawsuit who represents the interests of the class members and whose experience typifies the grievances of the whole class.