Why Are Many Retail Firms Interested in Customer Loyalty Cards

question 106

Multiple Choice

Why are many retail firms interested in customer loyalty cards and programs?

• A)Roughly 80 percent of the profit comes from 20 percent of the sales.
• B)Roughly 80 percent of a firm's customers are repeat business.
• C)Roughly 50 percent of a firm's customers purchase 80 percent of the sales volume of the product.
• D)Roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product.

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Definitions:

Sales Decrease

A reduction in the amount of products or services sold by a business over a given period.

Full Capacity

The highest amount of products or services a business can consistently generate during a specific timeframe under standard conditions.

Fixed Assets

Long-term tangible assets used in the operation of a business, not expected to be converted to cash within a year.

Sales Growth

The increase in sales over a specific period, reflecting a company's ability to grow revenue through marketing, expansion, and new product introductions.