Final answer:
RFM analysis is a statistical technique used in marketing for customer segmentation based on purchase behavior, including how recently, how often, and how much a customer buys. The correct option is B.
Step-by-step explanation:
Recency-frequency-monetary (RFM) analysis is b) A statistical analysis technique that is used in database marketing and customer segmentation to identify a firm's best customers by examining how recently a customer has purchased (Recency), how often they purchase (Frequency), and how much the customer spends (Monetary). It is a method to assign a ranking score to a customer based on these three quantitative factors.
RFM analysis helps businesses to target specific clusters of customers with communications that are much more relevant for their particular behavior, and thus likely to generate higher conversion rates. RFM has proven to be a valuable technique in direct marketing and is also used in various other industries for customer segmentation.