Refining RFM-Variables through Mokken Scale Analysis for the Purpose of Optimal Prospect Selection: Application to Ownership Patterns of Financial Products

In this study it is shown that clusters of products can be found through the application of exploratory Mokken Scale Analysis to ownership patterns of products offered by a financial services provider. Found clusters contain products that are often owned in combination, in order to satisfy all the facets of a so-called generic need. In this paper it is proposed that RFM-variables specific for such clusters are more useful for the purpose of predicting the response to a mailing than generalized RFM-variables.