Taco Bell Uses the RFM Matrix to Determine Its Most

question 43

True/False

Taco Bell uses the RFM matrix to determine its most valuable customers.Recency is weighted at a 5, frequency is weighted at a 4, and monetary is valued at a 3.Customer A has a score of R=2, F=9, M=1.Customer A's RFM score is 49.

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Definitions:

Disposable Income

The amount of money a household has available for spending and saving after income taxes have been accounted for.

Induced Consumption

Spending induced by changes in the level of income.

Autonomous Consumption

The minimum amount that people will spend on the necessities of life.

Income

The financial gain or money received by an individual or a business from various sources like work, investments, or transfers, during a specific period.