Why Are Many Retail Firms Interested in Customer Loyalty Cards

question 145

Multiple Choice

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

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

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Definitions:

Multiple Suppliers

A sourcing strategy where a company uses various suppliers to mitigate risks and ensure a steady supply of products or components.

Bullwhip Effect

The increasing fluctuation in orders that often occurs as orders move through the supply chain.

Orders Decrease

A situation where the number of orders for products or services is reducing, potentially impacting company revenue and production planning.

Unique-Event

A singular occurrence that is distinct in nature, not expected to repeat under normal circumstances.