When implementing linear programming models with three dimensions of the RFM framework:
A) The objective function remains the same as previous models: to maximize expected revenue.
B) The objective function changes: to minimize the budget of the marketing campaign.
C) Both a and b are true.
D) Neither a nor b is true.

Question

Quizplus · Accepted Answer

The objective function in linear programming models, especially when applied to the RFM (Recency, Frequency, Monetary value) framework, typically aims to maximize expected revenue. This is because the RFM framework is used to identify the best customers, and the goal is often to optimize marketing efforts to increase sales or revenue from these customers.

When Implementing Linear Programming Models with Three Dimensions of the RFM