The 80/20 Rule Suggests That

question 165

Multiple Choice

The 80/20 rule suggests that

• A) around 80 percent of a firm's inventory should be readily available while 20 percent should be reserved for emergency demand.
• B) nearly 80 percent of a firm's first-time users will become brand loyal while only 20 percent will use the product only once and then abandon it.
• C) about 80 percent of a firm's sales are obtained from about 20 percent of its customers.
• D) 80 percent of a firm's marketing program expenses are tax deductible while 20 percent are not.
• E) about 80 percent of a firm's products will be sold to ultimate consumers while 20 percent go to organizational buyers.

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Definitions:

Control Processes

Psychological methods by which individuals apply their cognitive resources to achieve specific goals, often involving aspects of attention, memory, and problem-solving.

Neurotransmitters

Chemicals in the nervous system that transmit signals from one neuron to another across synapses.

Hemispheres

Refers to the two halves of the brain or Earth, where each serves distinct functions: for the brain, the left and right hemispheres; for Earth, the Northern and Southern hemispheres.

Inhibition

The act of restraining, preventing, or hindering a process, action, or expression, often in psychological or physiological contexts.