The Frequency of Customer Purchases Is Not a Determining Factor

question 14

True/False

The frequency of customer purchases is not a determining factor for RFM score.

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Definitions:

Real Rate

The interest rate that has been adjusted for inflation, reflecting the true cost of borrowing or real yield on an investment.

Inflation

The rate at which the comprehensive cost of goods and services inflates, sapping the buying power.

Total Percentage Return

The total return on an investment, including both capital gains and dividends, expressed as a percentage of the initial investment.

Dividends

Distributions of earnings from a corporation to its owners, sharing a part of the company's income.