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Customer account profitability can provide a much clearer understanding of the relative profitability of all customers; and the use of it may well prompt a company to seek a more cost effective distribution channel. This is the first of a series of articles in which CAP will be discussed; this article will define CAP and develop a basic model; it will also report on initial research conducted within the food industry to establish the extent to which it is used in management decision making.
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Gattorna et al. (1977) studied this question.
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