Improved statistical techniques for response modeling
Author:
- 1 September 1988
- journal article
- research article
- Published by SAGE Publications in Journal of Direct Marketing
- Vol. 2 (4) , 6-18
Abstract
The multivariable techniques most prevalent in direct marketing research today for modeling response to a mailing (responders versus non-responders) are multiple regression, discriminant analysis, and AID (abbreviations are explained in the Introduction). This article shows why these traditional approaches may provide erroneous and misleading results for direct marketing use, which tend to be corrected by newer, more statistically appropriate methods, known as CHAID, logit, and log-linear models. We conclude with an application of the CHAID technique that resulted in a substantial lift in response for an Amoco Oil Company promotion to its credit card file.Keywords
This publication has 2 references indexed in Scilit:
- Some Common Pitfalls in Causal Analysis of Categorical DataJournal of Marketing Research, 1982
- An Exploratory Technique for Investigating Large Quantities of Categorical DataJournal of the Royal Statistical Society Series C: Applied Statistics, 1980