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A novel statistical approach to marketing campaigns

Author

Listed:
  • Yuzhi Cai

    (School of Management, Swansea University)

Abstract

We propose a novel heterogeneous choice model to deal with heterogeneity issues in decision making across individuals for marketing campaigns. Based on the proposed model, we further develop a novel classification method that enables us to identify an optimal group of individuals in a database for, e.g. future bank marketing campaigns. Our results show that, in the presence of heterogeneity, our model outperforms some commonly used benchmark models with respect to model specification errors, and our classification method outperforms the conventional method in respect of the positive response rate in marketing campaigns.

Suggested Citation

  • Yuzhi Cai, 2018. "A novel statistical approach to marketing campaigns," Working Papers 2018-21, Swansea University, School of Management.
    • Handle: RePEc:swn:wpaper:2018-21
    as

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    File URL: https://rahwebdav.swan.ac.uk/repec/pdf/WP2018-21.pdf
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    References listed on IDEAS

    as
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    6. Gregory Kordas, 2006. "Smoothed binary regression quantiles," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(3), pages 387-407.
    7. Manski, Charles F., 1975. "Maximum score estimation of the stochastic utility model of choice," Journal of Econometrics, Elsevier, vol. 3(3), pages 205-228, August.
    8. Fournier, B. & Rupin, N. & Bigerelle, M. & Najjar, D. & Iost, A. & Wilcox, R., 2007. "Estimating the parameters of a generalized lambda distribution," Computational Statistics & Data Analysis, Elsevier, vol. 51(6), pages 2813-2835, March.
    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

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