IDEAS home Printed from https://ideas.repec.org/a/pal/jmarka/v6y2018i1d10.1057_s41270-017-0027-1.html
   My bibliography  Save this article

Guidelines for assessing the value of a predictive algorithm: a case study

Author

Listed:
  • Ossi Ylijoki

    (Lappeenranta University of Technology (LUT))

Abstract

Predictive algorithms are increasingly used to support decision making. Understanding the costs and benefits of a predictive model is an important aspect for businesses. However, algorithms are abstract, and their impact oftentimes remains vague. We present a case study, where a machine-learning algorithm is used for bid qualification. We show how to apply classification matrices for business value assessment and propose guidelines and metrics for interpreting the impact in practical solutions.

Suggested Citation

  • Ossi Ylijoki, 2018. "Guidelines for assessing the value of a predictive algorithm: a case study," Journal of Marketing Analytics, Palgrave Macmillan, vol. 6(1), pages 19-26, March.
  • Handle: RePEc:pal:jmarka:v:6:y:2018:i:1:d:10.1057_s41270-017-0027-1
    DOI: 10.1057/s41270-017-0027-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41270-017-0027-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1057/s41270-017-0027-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. J. D’Haen & D. Van Den Poel, 2013. "Model-supported business-to-business prospect prediction based on an iterative customer acquisition framework," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/863, Ghent University, Faculty of Economics and Business Administration.
    2. Rick Lawrence & Claudia Perlich & Saharon Rosset & Ildar Khabibrakhmanov & Shilpa Mahatma & Sholom Weiss & Matt Callahan & Matt Collins & Alexey Ershov & Shiva Kumar, 2010. "Operations Research Improves Sales Force Productivity at IBM," Interfaces, INFORMS, vol. 40(1), pages 33-46, February.
    3. Neil A. Morgan & Lopo Leotte Rego, 2006. "The Value of Different Customer Satisfaction and Loyalty Metrics in Predicting Business Performance," Marketing Science, INFORMS, vol. 25(5), pages 426-439, September.
    4. Davis, Donna F. & Mentzer, John T., 2007. "Organizational factors in sales forecasting management," International Journal of Forecasting, Elsevier, vol. 23(3), pages 475-495.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Meyer, Anne & Glock, Katharina & Radaschewski, Frank, 2021. "Planning profitable tours for field sales forces: A unified view on sales analytics and mathematical optimization," Omega, Elsevier, vol. 105(C).
    2. Harmancioglu, Nukhet & Grinstein, Amir & Goldman, Arieh, 2010. "Innovation and performance outcomes of market information collection efforts: The role of top management team involvement," International Journal of Research in Marketing, Elsevier, vol. 27(1), pages 33-43.
    3. Dominik M. Wielgos & Christian Homburg & Christina Kuehnl, 2021. "Digital business capability: its impact on firm and customer performance," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 762-789, July.
    4. Yeung, Matthew C.H. & Ramasamy, Bala & Chen, Junsong & Paliwoda, Stan, 2013. "Customer satisfaction and consumer expenditure in selected European countries," International Journal of Research in Marketing, Elsevier, vol. 30(4), pages 406-416.
    5. Tatsuya Kimura, 2022. "New Customer Satisfaction Index for the Japanese Market: From Net Promoter Score to Promoter Score Japan ," GATR Journals jmmr300, Global Academy of Training and Research (GATR) Enterprise.
    6. Sun, Wenbin & Price, Joseph & Ding, Yuan, 2019. "The longitudinal effects of internationalization on firm performance: The moderating role of marketing capability," Journal of Business Research, Elsevier, vol. 95(C), pages 326-337.
    7. Elanor Colleoni & Flavia Bonaiuto & Laura Illia & Marino Bonaiuto, 2021. "Computer-Assisted Concept Analysis of Customer Centricity: A Review of the Literature on Employee Engagement, Culture, Leadership, and Identity Co-Creation," Sustainability, MDPI, vol. 13(9), pages 1-14, May.
    8. Larson, John & Jaworski, Bernard J. & Larson, Jack, 2021. "Managing your most loyal customer relationships," Business Horizons, Elsevier, vol. 64(1), pages 141-147.
    9. Vikas Mittal & Kyuhong Han & Carly Frennea & Markus Blut & Muzeeb Shaik & Narendra Bosukonda & Shrihari Sridhar, 2023. "Customer satisfaction, loyalty behaviors, and firm financial performance: what 40 years of research tells us," Marketing Letters, Springer, vol. 34(2), pages 171-187, June.
    10. Sunghun Chung & Donghyuk Shin & Jooyoung Park, 2022. "Predicting Firm Market Performance Using the Social Media Promoter Score," Marketing Letters, Springer, vol. 33(4), pages 545-561, December.
    11. TAKACS Joshep III & VADUVA Sebastian, 2017. "A Swot Analysis Of The Global Hospitality Industry," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 69(6), pages 105-119, December.
    12. Hananiel M. Gunawan & Oliandes Sondakh,, 2020. "How to Enhance Word of Mouth in the Era of E-commerce: Case study of Tokopedia," International Journal of Science and Business, IJSAB International, vol. 4(9), pages 47-59.
    13. Sergio Pardo-Jaramillo & Andrés Muñoz-Villamizar & Ignacio Osuna & Rolando Roncancio, 2020. "Mapping Research on Customer Centricity and Sustainable Organizations," Sustainability, MDPI, vol. 12(19), pages 1-18, September.
    14. Asier Baquero, 2022. "Net Promoter Score (NPS) and Customer Satisfaction: Relationship and Efficient Management," Sustainability, MDPI, vol. 14(4), pages 1-19, February.
    15. Johannes Habel & Sascha Alavi & Nicolas Heinitz, 2023. "A theory of predictive sales analytics adoption," AMS Review, Springer;Academy of Marketing Science, vol. 13(1), pages 34-54, June.
    16. Pennings, Clint L.P. & van Dalen, Jan & Rook, Laurens, 2019. "Coordinating judgmental forecasting: Coping with intentional biases," Omega, Elsevier, vol. 87(C), pages 46-56.
    17. Evgeni Stanimirov & Vladimir Jechev, 2013. "Consumer Orientation as a Factor for Satisfying the Clients," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 56-89.
    18. Agag, Gomaa & Ali Durrani, Baseer & Hassan Abdelmoety, Ziad & Mostafa Daher, Maya & Eid, Riyad, 2024. "Understanding the link between net promoter score and e-WOM behaviour on social media: The role of national culture," Journal of Business Research, Elsevier, vol. 170(C).
    19. Sven Baehre & Michele O’Dwyer & Lisa O’Malley & Nick Lee, 2022. "The use of Net Promoter Score (NPS) to predict sales growth: insights from an empirical investigation," Journal of the Academy of Marketing Science, Springer, vol. 50(1), pages 67-84, January.
    20. Carlos Fernández-Loría & Foster Provost, 2022. "Rejoinder to “Causal Decision Making and Causal Effect Estimation Are Not the Same…and Why It Matters”," INFORMS Joural on Data Science, INFORMS, vol. 1(1), pages 23-26, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jmarka:v:6:y:2018:i:1:d:10.1057_s41270-017-0027-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.