Tools for Behavior Targeting

Question 1

What predictors do survey and choice-based methods both have in common?

Answer 1

1. Customer Traits

2. Situational Variables

Question 2

What’s the difference between choice-based methods and survey?

Answer 2

1. Choice data has observed choices

2. Survey data has stated preferences.

Question 3

What are the marketing questions when modeling choice?

Answer 3

1. What will the customer choose as a function of perceptions and past purchases?
2. How will altering perceptions affect chance of purchase?

Question 4

Applications of Logit/Choice Model

Answer 4

Behavorial Targeting, Banner Ad targeting, Conjoint (CBC), Digital /Online Behavior

Question 5

How does Choice Modeling relate to Behavioral Targeting?

Answer 5

Choice modeling builds the model and Behavioral targeting uses the choice model to identify those to target based on likelihood of purchase (logit score) and max profit

Question 6

What do lift charts do?

Answer 6

Lift charts visualize how effective targeting is by sorting all customers from high score to low score

Question 7

What does the “lift” represent in lift charts?

Answer 7

The difference in potential sales realized between target based on scoring rule vs random mailing.

Question 8

How do you determine logit cutoffs?

Answer 8

Determine these based on max profit

Question 9

What are the is the limitation of Linear Regression?

Answer 9

It’s only possible with binary outcomes