For What Reason Would the Customer Pyramid Be More Appropriate

question 12

Multiple Choice

For what reason would the customer pyramid be more appropriate in identifying customer's life time value than utilizing the traditional 80-20 rule?

• A)The 80-20 rule doesn't recognize the behavior of 20% of the customers.
• B)The 80-20 rule focuses only on the value of 80% of the shoppers.
• C)Customers can more easily identify themselves in where they would be located in the customer pyramid than within the 80-20 rule.
• D)If shoppers have only buy 20% of the time,retailers have a missed sale 80% of the time.
• E)One group would be the 20 percent of the customers with the highest CLV scores,and the other group would be the rest,which does not consider important differences amount the 80 percent of the "rest" segment.

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Definitions:

Physiological Requirements

Basic physical needs of humans necessary for survival, such as food, water, shelter, and sleep.

Cultural Expectations

The shared norms and values that dictate the behavior considered appropriate within a specific culture.

Motivational Forces

Factors that influence the direction, intensity, and persistence of an individual's effort to achieve a goal.

Resistance

Opposition to or refusal of acceptance, often in the context of change, authority, or new ideas.