Why Is the Customer Pyramid More Appropriate for Identifying Customers

question 165

Multiple Choice

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

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

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Definitions:

Social Motives

Driving forces behind individuals' desires to interact, affiliate, and form relationships with others.

Social Need

A psychological requirement for wellbeing that involves essential interactions and relationships with other humans within a society.

Biological Needs

Fundamental requirements for survival, such as food, water, shelter, and sleep.

Social Needs

The essential requirements for individuals to feel accepted, valued, and connected within a community or society.