What does the 8020 principle propose a roughly 80

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76. What does the 80/20 principle propose? a. Roughly 80 percent of the profit comes from 20 percent of the sales. b. Roughly 80 percent of a firm's customers are repeat business. c. Roughly 50 percent of a firm's customers purchase 80 percent of the sales volume of the product. d. Roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product. e. Sales are equally divided among heavy, medium, and light users, but they all need slightly different products. ANS: D The 80/20 principle proposes that a minority of a firm's customers purchase a majority of the volume of the product. PTS: 1 REF: 124 OBJ: 08-4 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Customer 77. The _____ proposes that a minority of a firm's customers purchase a majority of the volume of the product.
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78. Train collectors Jack McCoy and Sandro Dias have decided to open a store that sells train memorabil- ia--everything from toy train sets to full-sized railroad signs. After 18 months in business, they have noticed most of their sales are to the same small group of customers (about 40 people) even though they have records to show there are over 200 active train collectors within a 50-mile radius of their store. Their retailing experience is supportive of the: PTS: 1 REF: 124 OBJ: 08-4 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Customer 79. Business marketers focus on all of the following market segments EXCEPT: PTS: 1 REF: 124 OBJ: 08-5 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Strategy 80. Zatarains offers packaged spice mixes for jambalaya, gumbo, and red beans and rice. Consumers can buy the product in the store, so Zatarains sells individual household-size packages to resellers. It also sells institutional-size packages to military bases, schools, restaurants, and other large organizations. The marketers of Zatarains would most likely segment the business market according to: a. company characteristics b. the buying process c. financial terms d. customer relationship objectives e. length of distribution channel ANS: A Each of the buyers of Zatarains’ products have distinct characteristics to be met, such as type of com- pany, company size, and product use. PTS: 1 REF: 125 OBJ: 08-5 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Strategy
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