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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/31253
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| Title: | Pseudo-social network targeting from consumer transaction data |
| Authors: | Martens, David
Provost, Foster |
| Issue Date: | 26-Sep-2011 |
| Series/Report no.: | CeDER-11-05 |
| Abstract: | This design science paper presents a method for targeting consumers
based on a 'pseudo-social network' (PSN): consumers are linked if they
transfer money to the same entities. A marketer can target those
individuals that are strongly connected to key individuals. We present
the PSN design and a large-scale empirical study using data from a major
bank. For two different product offerings, consumers that are close to
existing customers in the PSN have significantly higher take rates than
the 'most likely' candidates identified by state-of-the-art
socio-demographic (SD) predictive modeling. Interestingly, the PSN
targeting only does better for the closest neighbors. However, the
different models capture different information: combining the two does
significantly better than either alone. The results demonstrate that
social targeting can be applied broadly, to settings where the network
among consumers is unlikely to be a true social network, but nonetheless
captures inherent similarity. |
| URI: | http://hdl.handle.net/2451/31253 |
| Appears in Collections: | CeDER Working Papers
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