Customer rationalization is founded on a basic and important proposition: not all customers are equal. Put another way, some customers are more important than others. This fundamental proposition simply suggests that managers evaluate closely the relationship that the firm maintains with current customers as well as the relationships that are likely to be established with future customers. If customers are classified on the basis of “ABC Analysis,” “A” customers are those with the greatest importance to the firm. “A” customers are the firm's “customers of choice” and are the largest contributors to sales/profit. Because of their importance, the firm works closely with them to ensure that they are both satisfied and successful. “B” customers are of moderate importance to a firm because of their moderate contribution to sales/profit. “C” customers seldom merit special attention because their contribution to sales is very low and the firm cannot meet all the...
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Editor information
Rights and permissions
Copyright information
© 2000 Kluwer Academic Publishers
About this entry
Cite this entry
(2000). CUSTOMER RATIONALIZATION . In: Swamidass, P.M. (eds) Encyclopedia of Production and Manufacturing Management. Springer, Boston, MA . https://doi.org/10.1007/1-4020-0612-8_204
Download citation
DOI: https://doi.org/10.1007/1-4020-0612-8_204
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-7923-8630-8
Online ISBN: 978-1-4020-0612-8
eBook Packages: Springer Book Archive