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:

Dependent

Relying on someone or something else for support, sustenance, or survival.

Obsessive-Compulsive

A mental disorder characterized by intrusive thoughts (obsessions) that lead to repetitive behaviors (compulsions).

Psychopaths

Individuals who exhibit a long-term pattern of manipulating, exploiting, or violating the rights of others, often without any remorse.

Heightened Ability

An enhanced or increased skill set beyond the average level, often specific to a particular function or activity.