Answer & Solution
Answer: Option B
Solution:
RFM analysis is a marketing technique used to evaluate and categorize a customer’s behavior based on three factors:
R (Recency): How recently the customer has made a purchase.
F (Frequency): How often the customer makes a purchase.
M (Monetary): How much money the customer spends when they make a purchase.
Each factor is typically scored on a scale from 1 to 5, where:
1 indicates the lowest or worst performance, and
5 indicates the highest or best performance.
In Mary’s case, her RFM score is
"1 1 5":
R = 1 → She hasn’t ordered recently.
F = 1 → She orders infrequently.
M = 5 → When she does order, she spends a large amount.
Therefore, Mary is classified as someone who hasn’t ordered recently, orders rarely, but places large orders when she does.
