Why is the customer pyramid more appropriate for identifying customers than the 80-20 rule?
A) The 80-20 rule does not recognize the behaviour of 20 percent of the customers
B) The 80-20 rule focuses on the value of 80 percent of the shoppers
C) Buyers cannot use the information derived from the 80-20 rule
D) Shoppers tend to buy only 20 percent of the time, and retailers want to increase it to 80 percent
E) Retailers can develop more appropriate strategies for each of the segments in the pyramid

Question

Quizplus · Accepted Answer

The customer pyramid is more appropriate for identifying customers than the 80-20 rule because retailers can develop more appropriate strategies for each of the segments in the pyramid. The 80-20 rule only focuses on the value of 80 percent of the shoppers and does not recognize the behavior of 20 percent of the customers. Additionally, buyers cannot use the information derived from the 80-20 rule, and the statement that shoppers only buy 20 percent of the time and retailers want to increase it to 80 percent is not accurate. Therefore, the best choice is E.

Why Is the Customer Pyramid More Appropriate for Identifying Customers