A CRM System Has Allowed Many Companies to Find That

question 8

Multiple Choice

A CRM system has allowed many companies to find that they are subject to the Pareto principle, that is, that 80 percent of their profits may come from _______ percent of their customers.

• A)20
• B)40
• C)30
• D)10

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Definitions:

Herfindahl Index

A measure of the size of firms in relation to the industry and an indicator of the amount of competition among them. It squares and then sums the market shares of all firms in the industry.

Market Shares

A part of the market that is influenced or owned by a particular company or product, usually measured as a percentage of the market's complete sales.

Herfindahl Index

A measure used to assess the level of concentration and competition within an industry, calculated by summing the squares of market shares of all firms in the market.

Concentration Ratio

An economic metric that assesses the market share of the largest firms within an industry to evaluate the market's competitive landscape.