Generating Scoring Models With Auxiliary Target Variables And Data Bridging

Wendy Gersten
DaimlerChrysler Research
Johannes Ruhland
Friedrich-Schiller-University of Jena

The Status Quo and Problem Description

Over the last few years, the use of direct marketing campaigns to solicit potential customers through individual and personalized communications has soared (DMA, 2002). This is due to rising costs for sales representatives, decreasing efficiency of impersonal mass marketing and the resulting need to establish relationships to (potential) customers (Holland and Heeg, 1998). The efficiency of such campaigns depends chiefly on four factors: message, design, timing of the mailing, and target group selection. Hence, target group selection is judged by several authors as most important of the four (Nash, 1984; Bult and Wansbeek, 1995; Collins, 2001; McAlevey, 2001).