Which of the Following Statements Is $\bold{FALSE}$ Regarding the Use of the 80/20 Rule in Managing Customer

question 13

Multiple Choice

Which of the following statements is $\bold{FALSE}$ regarding the use of the 80/20 rule in managing customer relationships?

• A) Advances in technology and data collection techniques allow firms to profile customers in real time.
• B) Twenty percent of customers provide 80 percent of business profits.
• C) Some customers are too expensive to keep given the low level of profits that they generate.
• D) The 80 percent of customers in the bottom tier should be fired so the firm can focus on its top customers.
• E) The firm's top customers are the most obvious candidates for retention strategies.

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Definitions:

Quiet Environment

A setting or situation with minimal noise, facilitating focus, relaxation, or tranquility.

Herbert Benson

An American physician and founder of the Mind/Body Medical Institute, known for his research on the relaxation response and mind-body medicine.

Self-Talk

The internal dialogue that occurs within a person's mind, influencing their attitude and behavior.

Awfulizing

The cognitive distortion of imagining the worst possible outcomes in a situation, often leading to increased anxiety or fear.