Access the full text.
Sign up today, get DeepDyve free for 14 days.
Peter Rossi, R. McCulloch, Greg Allenby (1996)
The Value of Purchase History Data in Target MarketingMarketing Science, 15
Ralf Elsner, M. Krafft, Arnd Huchzermeier (2004)
The 2003 ISMS Practice Prize Winner: Optimizing Rhenania's Direct Marketing Business Through Dynamic Multilevel Modeling (DMLM) in a Multicatalog-Brand EnvironmentMarketing Science, 23
R. Rust, Katherine Lemon, V. Zeithaml (2004)
Return on Marketing: Using Customer Equity to Focus Marketing StrategyJournal of Marketing, 68
Füsun Gönül, F. Hofstede (2006)
How to Compute Optimal Catalog Mailing DecisionsMarketing Science, 25
W. Reinartz, Vikas Kumar (2000)
On the Profitability of Long-Life Customers in a Noncontractual Setting: An Empirical Investigation and Implications for MarketingJournal of Marketing, 64
M. Blair (1998)
Advertising Wearin and Wearout: Ten Years Later--More Empirical Evidence and Successful PracticeJournal of Advertising Research, 38
R. Gardyn (2003)
Not giving upAmerican Demographics, 25
A. Gelman, J. Carlin, H. Stern, D. Dunson, Aki Vehtari, D. Rubin (2010)
Bayesian Data Analysis
J. Heckman (1979)
Sample selection bias as a specification errorApplied Econometrics, 31
Qing Liu (2006)
Fisher College of Business Working Paper Series " Investigating Endogeneity Bias in Marketing "
Füsun Gönül, M. Shi (1998)
Optimal Mailing of Catalogs: a New Methodology Using Estimable Structural Dynamic Programming ModelsManagement Science, 44
R. Venkatesan, Vijay Kumar (2004)
A Customer Lifetime Value Framework for Customer Selection and Resource Allocation StrategyJournal of Marketing, 68
R. Davidson, J. MacKinnon (1994)
Estimation and inference in econometrics
E. Malthouse (2002)
Performance-based variable selection for scoring modelsJournal of Interactive Marketing, 16
R. Venkatesan, V. Kumar, Timothy Bohling (2007)
Optimal Customer Relationship Management Using Bayesian Decision Theory: An Application for Customer SelectionJournal of Marketing Research, 44
Vinay Kumar, J. Petersen (2005)
Using a customer-Level marketing strategy to enhance firm performance: A review of theoretical and empirical evidenceJournal of the Academy of Marketing Science, 33
G. Bitran, Susana Mondschein (1996)
Mailing Decisions in the Catalog Sales IndustryManagement Science, 42
(2004)
The DMA 2004 response rate report
Greg Allenby, Robert Leone, Lichung Jen (1999)
A Dynamic Model of Purchase Timing with Application to Direct MarketingJournal of the American Statistical Association, 94
Q. Liu, T. Otter, G. M. Allenby (2007)
Investigating endogeneity bias in marketingMarketing Science, 26
Hermann. Simon (1982)
ADPULS: An Advertising Model with Wearout and PulsationJournal of Marketing Research, 19
Ralf Elsner, M. Krafft, Arnd Huchzermeier (2004)
Optimizing Rhenania´s Direct Marketing Business through Dynamic Multi-Level Modeling (DMLM) in a Multi-Catalog-Brand EnvironmentMarketing Science, 23
A. Basu, Atasi Basu, R. Batra (1995)
Modeling the Response Pattern to Direct Marketing CampaignsJournal of Marketing Research, 32
Database marketers often use a scoring model to predict the likely value of contacting customers based on their purchase histories and demographics. However, when purchase history has been a partial result of the firm’s own contacting efforts, these contacts should also be accounted for in the scoring model. The current work extends the existing literature to account for the firm’s contacts by focusing on each customer’s most recent purchase. Contacts prior to that purchase are designated “prior contacts” and those after that purchase “recent contacts.” A new latent variables formulation of the customer’s propensity to respond is used to predict the likelihood and time of response as well as the relationship to the independent variables. The methodology also addresses the statistical problems of “selection bias” and “endogeneity,” which have been largely ignored in most customer scoring models. An application to the database of a charitable organization confirms that, in this case: (1) the effect of the firm’s customer contact efforts is associated with a stronger propensity to respond than is the case for the included demographics; (2) the firm’s “recent contact” efforts are associated with larger returns in customers’ propensity to respond than the “prior contact” efforts; and (3) the “recent contact” efforts are associated with an at-first increasing but then diminishing propensity to respond up to a point beyond which actual decreasing returns are observed with further contacts. Clearly, too much contacting can alienate would-be donors. The proposed model is general enough to calibrate such impacts in other database marketing applications where the relative effects might be different.
Journal of the Academy of Marketing Science – Springer Journals
Published: Apr 8, 2008
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.