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Giant Dragon has three customers: Andrew, Pat and Sarah. The store wants to pick up...

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Accounting

Giant Dragon has three customers: Andrew, Pat and Sarah. The store wants to pick up one customer who is the most valuable to it. Please use the RFM analysis and help the store choose the right customer. The point allocation rules are listed in Table 3. The customer data is listed in Table 4.

Table 3. Point Allocation Rules

Recency

20 if within past 2 months; 10 if within past 4 months; 05 if within past 6 months;03 if within past 9 months; 01 if within past 12 months;

Frequency

3 points for each purchase within 12 months. Maximum = 15 points.

Monetary Value

10 percent of the $ Volume of Purchase with 12 months; Maximum = 25 point

Weight

Recency

Frequency

Monetary ($)

6

3

4

Table 4. Consumer Data

Consumer

Month

Recency

Frequency

Monetary ($)

Andrew

September

2

2

70

July

4

2

100

February

9

1

80

Pat

April

7

2

500

Sarah

October

1

1

80

June

5

2

90

May

6

1

50

Februrary

9

1

30

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