What is wrong with the 80-20 scheme?
A) It is too broad to segment customers in this way
B) Customers who are labelled could change and future advertising misses them
C) It does not consider the differences among the 80 percent in the "rest" segment
D) It does not consider the differences between 80 percent and the 20 percent
E) It does not break down the variables within the remaining 20 percent

Question

Quizplus · Accepted Answer

The 80-20 scheme fails to consider the differences among the 80 percent in the "rest" segment. This means that there could be significant variations among these customers that are not being taken into account, leading to ineffective marketing strategies.

What Is Wrong with the 80-20 Scheme