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Genetic Logistic Regression Model:
A Model-free Approach to Identifying Responders to a CRM Solicitation Bruce Ratner, Ph.D. Logistic regression is
a popular technique for classifying individuals into two mutually
exclusive and exhaustive categories, for example: buy-not buy or
responder-non-responder. It is the workhorse of response modeling as
its results are considered the gold standard. Moreover, it is used as
the benchmark for assessing the superiority of newer techniques,
such as a Genetic Logistic Regression Model, also known as the GenIQ
Model. In database marketing, response to a prior solicitation is the
binary class variable (defined by responder and non-responder), and the
logistic regression model is built to classify an individual as either
most likely or least likely to respond to a future solicitation. The
purpose of this article is to present the Genetic Logistic Regression
Model as an assumption-free, nonparametric methodology, i.e.,
model-free, based on Darwin's Principle of Survival of the Fittest, and
natural genetic operations - namely, genetic programming. The
genetic-based logistic regression offers a clear advantage over the
statistical logistic regression method, whose performance is dependent
on theoretical assumptions and data restrictions. The Genetic Logistic
Regression determines the best set of predictors based on a
simultaneous and virtually unbiased assessment of all variables, an
achievement not possible with current statistical logistic regression.
Go Back to Article Market Segment Classification Modeling with Machine Learning 1 800 DM STAT-1, or e-mail at br@dmstat1.com. |
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