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Direct
Response Marketing
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 the GenIQ Model©.
In direct response 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 an alterantive to the
logistic regression model, namely, the GenIQ Model. GenIQ is as an
assumption-free, nonparametric methodology based the machine learning
genetic programming paradigm. The genetic-based logistic regression
alternative offers a clear advantage over the statistical logistic
regression method, whose performance is dependent on theoretical
assumptions and data restrictions. The GenIQ Model 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. For an eye-opening preview of the 9-step
modeling process of GenIQ, click here.
1 800 DM STAT-1, or e-mail at br@dmstat1.com. |
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