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:

Texas

A state located in the South Central region of the United States, known for its significant cultural, economic, and historical impact.

Expected Income

The income an individual anticipates receiving, based on current or future economic conditions.

Low Effort

The minimal exertion of physical or mental energy by an individual or group, often resulting in reduced productivity or output.

Bad Luck

An occurrence of unfavorable or adverse outcomes or circumstances, often beyond one's control.