Verizon Uses the RFM Matrix to Determine Its Most Valuable

question 29

Multiple Choice

Verizon uses the RFM matrix to determine its most valuable customers.Recency is weighted at a 3, frequency is weighted at a 9, and monetary is valued at a 7.Customer A has a score of R=1, F=5, M=6.What is Customer A's RFM score?

• A) 15
• B) 31
• C) 90
• D) 100

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Definitions:

Product Quality

A measure of the inherent or assigned characteristics of a product that determines its degree of excellence compared to others of a similar nature.

Bubble-Gum Fragrance

A sweet, fruity scent reminiscent of bubble gum, often used in perfumes, personal care products, and flavorings.

Vitality Index

A metric used to assess the innovation of a company by measuring the percentage of revenue from new products compared to its total revenue.

Promotional Dollars

Funds allocated by a company or brand for marketing activities aimed at promoting their products or services to increase consumer engagement and sales.