Customer profitability analysis:
A)Always shows that the company with the highest total sales generates the highest net customer profit.
B)Always shows that the company with the lowest total sales generates the lowest net customer profit.
C)Produces the same results as a Pareto analysis.
D)Helps identify actions that affect customer profitability.
E)None of the above answers is correct.

Question

Quizplus · Accepted Answer

Customer profitability analysis helps to identify actions that affect customer profitability, such as changes in pricing or sales and marketing strategies. It does not always show that the company with the highest or lowest total sales generates the highest or lowest net customer profit, and it does not produce the same results as a Pareto analysis. Therefore, options A, B, and C are incorrect.

Customer Profitability Analysis