In RFM Analysis, an F Score of 1 Shows That

question 22

Multiple Choice

In RFM analysis, an F score of 1 shows that ________.

• A) a customer has bought the least expensive items
• B) a customer has frequently placed orders
• C) a customer has always bought the most expensive items
• D) a customer has rarely made a purchase

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Definitions:

Kinked Demand Curve

A theory in economics suggesting that prices for a product have a tendency to stay stable because competitors will match price decreases but not price increases.

Administered Prices

Prices that are set by an authority, such as a government or agency, rather than being determined by market forces.

Profit-Maximizing Firm

A business entity whose primary goal is to achieve the highest possible profit from its operations.

Marginal Cost

The cost added by producing one more unit of a product or service, a key concept in economics determining optimal production levels.