Question

In a RFM framework for customer relationship management, high rank of F and low rank of R indicates the customer segment is less likely to be still "alive" or "active".

A. True
B. False

Answer 1

In a RFM framework, a high rank of F and low rank of R indicates less active customers.

Step-by-step explanation:

In a RFM framework for customer relationship management, RFM stands for Recency, Frequency, and Monetary Value. Recency refers to how recently a customer has made a purchase, Frequency refers to how often a customer makes purchases, and Monetary Value refers to the amount of money a customer spends on their purchases. In the context of the question, a high rank of F (Frequency) and a low rank of R (Recency) would indicate that the customer segment is less likely to be still 'alive' or 'active'. This means that they have made frequent purchases in the past but have not made a purchase recently.