3. Using the company that you chose for point 2, identify a RFM score for a theoretical customer and explain the reasoning for the score. For example, I would say that someone that just purchased a Bugatti (trading in their 10-year old car), would have an RFM score of 5, 1. 5. This would indicate that there was a very recent purchase, the purchaser does not purchase frequently (using the 10-year trade-in as the indicator), and the customer spent a lot of money (in the top 20% of sales).

3. Using the company that you chose for point 2, identify a RFM score for a theoretical customer and explain the reasoning for the score. For example, I would say that someone that just purchased a Bugatti (trading in their 10-year old car), would have an RFM score of 5, 1. 5. This would indicate that there was a very recent purchase, the purchaser does not purchase frequently (using the 10-year trade-in as the indicator), and the customer spent a lot of money (in the top 20% of sales).

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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