Why Is the Customer Pyramid More Appropriate for Identifying Customers

question 115

Multiple Choice

Why is the customer pyramid more appropriate for identifying customers than the 80-20 rule?

• A) Buyers cannot use the information derived from the 80-20 rule
• B) The 80-20 rule does not recognize the behaviour of 20 percent of the customers
• C) Retailers can develop more appropriate strategies for each of the segments in the pyramid
• D) Shoppers tend to buy only 20 percent of the time, and retailers want to increase it to 80 percent
• E) The 80-20 rule focuses on the value of 80 percent of the shoppers

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Definitions:

Salivating

The secretion of saliva, often triggered by the anticipation of food, as part of the body's digestion process.

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Anxiety learned through classical conditioning, where a neutral stimulus becomes associated with an anxiety-provoking event.

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A liquid product used for cleaning the mouth, freshening the breath, and may contain antiseptic ingredients to help prevent oral diseases.

Acquisition

Acquisition refers to the process of gaining new information, skills, or assets.