Why Are Many Retail Firms Interested in Customer Loyalty Cards

question 178

Multiple Choice

Why are many retail firms interested in customer loyalty cards and programs?

• A) Roughly 80 percent of the profit comes from 20 percent of the sales.
• B) Roughly 80 percent of a firm's customers are repeat business.
• C) Roughly 50 percent of a firm's customers purchase 80 percent of the sales volume of the product.
• D) Roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product.
• E) Sales are equally divided among heavy,medium,and light users,but they all need slightly different products.

---

Definitions:

Ninth Grade

Refers to the ninth year of schooling in many educational systems, often the first year of high school in the United States.

Stanine

A nine-point scale used primarily in educational assessments to classify scores into nine broad levels, with 5 being average.

Percentile

A score indicating the percentage of scores in its frequency distribution that are equal to or lower than it.