Longitudinal clustering for heterogeneous binary data
Longitudinal clustering for heterogeneous binary data
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DOI:
10.5705/ss.202018.0298
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发表时间:
2021
影响因子:
1.4
通讯作者:
Xiaolu Zhu;Xiwei Tang;A. Qu
中科院分区:
文献类型:
--
作者:
Xiaolu Zhu;Xiwei Tang;A. Qu
Personalized marketing has emerged as a critical marketing strategy due to the success of E-commerce and the accessibility of digital marketing data. It is well-known that different groups of customers might react rather differently to the same marketing strategy due to their individual preferences. In this paper, we propose a pairwise subgrouping approach to identify subgroups and categorize similar marketing effects into groups. Specifically, we model customers’ purchase decisions as binary responses under the generalized linear model framework while incorporating their longitudinal correlation. We impose penalization on pairwise distances of heterogeneous effects to formulate subgroups, where different subgroups are associated with different marketing effects. In theory, we establish the consistency of subgroup identification in the sense that the true underlying segmentation structure can be recovered successfully, in addition to parameter estimation consistency. We conduct numerical studies and a real data application using IRI marketing data on in-store display marketing effects, where the proposed method outperforms other competing methods in terms of subgrouping identification and marketing effects estimation. 1 Statistica Sinica: Newly accepted Paper (accepted author-version subject to English editing)