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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/14119
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| Title: | Models of Customer Behavior: From Populations to Individuals |
| Authors: | Jiang, Tianyi
Tuzhilin, Alex |
| Issue Date: | 2004 |
| Publisher: | Stern School of Business, New York University |
| Series/Report no.: | CeDER-04-05 |
| Abstract: | There have been various claims made in the marketing community about the
benefits of 1-to-1 marketing versus traditional customer segmentation
approaches and how much they can improve understanding of customer
behavior. However, few rigorous studies exist that systematically
compare these approaches. In this paper, we conducted such a systematic
study and compared the performance of aggregate, segmentation, and
1-to-1 marketing approaches across a broad range of experimental
settings such as multiple segmentation levels, multiple real world
marketing datasets, multiple dependent variables, different types of
classifiers, different segmentation techniques, and different predictive
measures. Our results show that, overall, 1-to-1 modeling significantly
outperforms the aggregate approach among high-volume customers and is
never worse than aggregate approach among low-volume customers in our
experimental settings. Moreover, the best segmentation techniques tend
to outperform 1-to-1 modeling among low-volume customers. |
| URI: | http://hdl.handle.net/2451/14119 |
| Appears in Collections: | CeDER Working Papers
IOMS: Information Systems Working Papers
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