Identifying the direct mail-prone consumer

다국어 초록 (Multilingual Abstract)

Current modeling research in target marketing usually stresses the identification of profitablenames for specific mailings. There is little recent research about the characteristics of typicaldirect mail (DM) customers. In this paper we determine the link between customers’ socio-demographiccharacteristics and their propensity of purchasing products through the mail. We hypothesize the existence of a latent variable DM-proneness, whichrepresents a consumer’s tendency to shop via direct mail. Our model links the socio-demographicsof customers to their self-reported purchase behavior through the latent variable DM-pronenessin a Multiple Indicators and Multiple Causes (MIMIC) model. We also introduce a second latent variable, DM-informationinterest, which represents the desire to receive direct offers through the mail. Themodel allows for testing the influence of DM-information interest on DM-proneness.The model is fit on actual consumer data using the LISREL program.The findingsshow that the characteristics of the DM-prone and the DM-information interested are almost similar,and that DM-information interest appears to directly affect DM-proneness. The DM-prone consumer is identified as being relatively younger, having somewhat lower education, being rather well-off, having a larger family size and is relatively more likely to have a female head of the household.We also show that consumer’s tendency to shop via direct mail can be captured by a latent variable approach, and that DM-proneness can be quite well predicted by demographic consumer characteristics.

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