Generalized additive models (GAMs) are a generalization of generalized linear models (GLMs) and constitute a powerful technique which has successfully proven its ability to capture nonlinear relationships between explanatory variables and a response variable in many domains. In this paper, GAMs...

Several studies have demonstrated the superior performance of ensemble classification algorithms, whereby multiple member classifiers are combined into one aggregated and powerful classification model, over single models. In this paper, two rotation-based ensemble classifiers are proposed as...

Several recent studies have explored the virtues of behavioral targeting and personalization for online advertising. In this paper, we add to this literature by proposing a cost-effective methodology for the prediction of demographic web site visitor profiles that can be used for web advertising...

Several supervised learning algorithms are suited to classify instances into a multiclass value space. MultiNomial Logit (MNL) is recognized as a robust classifier and is commonly applied within the CRM (Customer Relationship Management) domain. Unfortunately, to date, it is unable to handle...

Since it is generally recognized that models evaluated on the data that was used for constructing them are overly optimistic, in predictive modeling practice, the assessment of a model’s predictive performance frequently relies on a one-shot train-and-test split between observations used for...

In this research we use the framework of market-basket analysis and techniques from modern multivariate time-series analysis to measure and explain the dynamic impact of a price promotion on the sales of a complementary product. The large scale of this research enables us to derive empirical...

Undoubtedly, Customer Relationship Management (CRM) has gained its importance through the statement that acquiring a new customer is several times more costly than retaining and selling additional products to existing customers. Consequently, marketing practitioners are currently often focusing...

In an era of strong customer relationship management (CRM) emphasis, firms strive to build valuable relationships with their existing customer base. In this study we attempt to better understand three important measures of customer outcome: next buy, partial defection and customers’...

In this study, we propose a customer-oriented conceptual model of segmentation variables for mail-order repeat buying behavior. We investigate (1) from a theoretical perspective what customer-related variables should be included in response models for modeling repeat purchasing, and (2)...

Although most data mining (DM) models are complex and general in nature, the implementation of such models in specific environments us often subject to practical constraints (e.g. budget constraints) or thresholds (e.g. only mail to customers with an expected profit higher than the investment...