3. Using the company that you chose for point 2, identify a RFM score for a theoretical customer and explain the reasoning for the score. For example, I would say that someone that just purchased a Bugatti (trading in their 10-year old car), would have an RFM score of 5, 1. 5. This would indicate that there was a very recent purchase, the purchaser does not purchase frequently (using the 10-year trade-in as the indicator), and the customer spent a lot of money (in the top 20% of sales).
3. Using the company that you chose for point 2, identify a RFM score for a theoretical customer and explain the reasoning for the score. For example, I would say that someone that just purchased a Bugatti (trading in their 10-year old car), would have an RFM score of 5, 1. 5. This would indicate that there was a very recent purchase, the purchaser does not purchase frequently (using the 10-year trade-in as the indicator), and the customer spent a lot of money (in the top 20% of sales).
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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walmart is the company.
![3. Using the company that you chose for point 2, identify a RFM score for a theoretical customer and explain the reasoning for the
score. For example, I would say that someone that just purchased a Bugatti (trading in their 10-year old car), would have an
RFM score of 5, 1, 5. This would indicate that there was a very recent purchase, the purchaser does not purchase frequently
(using the 10-year trade-in as the indicator), and the customer spent a lot of money (in the top 20% of sales).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0cbfcf30-e63f-48f4-9ec8-b6966b1013bd%2F101261da-39b4-47f7-9d11-bcb757301fac%2Fheq17cc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Using the company that you chose for point 2, identify a RFM score for a theoretical customer and explain the reasoning for the
score. For example, I would say that someone that just purchased a Bugatti (trading in their 10-year old car), would have an
RFM score of 5, 1, 5. This would indicate that there was a very recent purchase, the purchaser does not purchase frequently
(using the 10-year trade-in as the indicator), and the customer spent a lot of money (in the top 20% of sales).
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