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The use of frontier estimation in direct marketing
A common problem in direct marketing is to identify which physicians are the best prospects for an intervention that would encourage them to prescribe a drug. The standard procedure is to measure how far their prescribing behavior falls short of the level predicted by a regression line. We suggest t...
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Published in: | Journal of interactive marketing 2000, Vol.14 (2), p.33-42 |
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Main Authors: | , , , |
Format: | Article |
Language: | English |
Subjects: | |
Citations: | Items that this one cites |
Online Access: | Get full text |
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Summary: | A common problem in direct marketing is to identify which physicians are the best prospects for an intervention that would encourage them to prescribe a drug. The standard procedure is to measure how far their prescribing behavior falls short of the level predicted by a regression line. We suggest that a better approach is to determine how far they fall short of “best practice,” as measured by a frontier line. We discuss ways of measuring the frontier and apply the techniques to both simulated data and a live data set. The results show that frontier estimation is particularly valuable when the data are heteroscedastic, a relatively common situation. |
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ISSN: | 1094-9968 1520-6653 |
DOI: | 10.1002/(SICI)1520-6653(200021)14:2<33::AID-DIR3>3.0.CO;2-L |