Which of the following proposes that a minority of a firm's customers purchase a majority of the volume of the product?
A) the equity fallacy
B) the majority fallacy
C) the cannibalization rule
D) the 80/20 principle

Question

Quizplus · Accepted Answer

The 80/20 principle, also known as the Pareto principle, proposes that 20% of a firm's customers purchase 80% of the volume of the product. It is important for firms to target and cater to these top customers in order to maximize profits.

Which of the Following Proposes That a Minority of a Firm's