7-Eleven Stores learned that 25 percent of its shopping base is responsible for a substantial majority of its revenue.This is the general idea posited by the 80/20 principle.

Question

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The statement is true. The 80/20 principle (also known as the Pareto principle) suggests that 80 percent of effects come from 20 percent of causes, and can often be applied to business where a small percentage of customers or products generate the bulk of revenue. In this case, 7-Eleven found that 25 percent of its customers were responsible for generating the majority of its revenue.

7-Eleven Stores Learned That 25 Percent of Its Shopping Base