Deriving Target Selection Rules From Endogenously Selected Samples
- Topics:
- Direct Marketing
- Tags:
- Advertising & Promotion,
- Software,
- Selection,
- Sales Channel,
- Sales,
- Productivity,
- Marketing Research,
- Marketing,
- Hardware,
- Erasmus University Rotterdam,
- ...
- Source:
- Erasmus University Rotterdam
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Overview: One of the aims of direct marketing in practice is to target the most profitable customers in the database at hand. This selection is often done based on observed behavior in the past. As a consequence, databases arising from the responses to direct mailings are not a random sample from all potential respondents. Treating an endogenously selected sample as a random sample results in inconsistent parameter estimates, this in general also harms the predictive performance of the model. The paper develops an adjustment to the likelihood of the model that corrects for the endogenous sample selection and applies this technique to the selection of mail targets for a charitable organization.
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Format: PDF | Size: 1,085KB | Date: Nov 2001 | Pages: 45
