Which of the Following Techniques Used to Analyze Marketing Databases

question 132

Multiple Choice

Which of the following techniques used to analyze marketing databases considers whether a customer has made a purchase recently as well as how often that customer makes a purchase?

• A) recency-frequency-monetary analysis (RFM)
• B) predictive modeling
• C) customer valuation
• D) data mining
• E) lifetime value analysis

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Definitions:

Payback Period

The Payback Period is the duration required to recover the cost of an investment.

Required Period

The time frame necessary to complete a particular task or to achieve a specific objective.

Accept Decision

In decision-making, particularly in capital budgeting, it's the choice to proceed with a project or investment based on the analysis that it meets specified criteria for profitability or strategic value.

NPV Method

A method of evaluating investments by calculating the Net Present Value of the project's cash inflows and outflows discounted at the investment's cost of capital.