Modeling contribution behavior in fundraising: Segmentation analysis for a public broadcasting station

Durango-Cohen, Elizabeth J.

doi:10.1016/j.ejor.2013.01.008

Cited by 6 publications

(3 citation statements)

References 26 publications

(40 reference statements)

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“…, and derive transition probabilities among states for promotion and no-promotion actions. Transition probabilities are included in an N x N transition matrix, where Pik (i, k=1,2,…,N) is the transition probability that a customer will move to state k in the next period given that currently he/she is in state i (Durango-Cohen, 2013), and calculated by the formula:…”

Section: Proposed Frameworkmentioning

confidence: 99%

Development of a hybrid model to plan segment based optimal promotion strategy

Ekinci

Güran

2022

International Journal of Market Research

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The study addresses the long-term effects of promotions in terms of movement in a value-based segmentation (lead, iron, gold, platinum), instead of simply looking at response rates that occur shortly after the promotion. The study develops a framework for planning an optimal promotion strategy via Markov Decision Processes and Machine Learning methods for an online department store. In the first phase, the states are set as the customer profitability segments in order to conduct the MDPs. Then, MDP model is solved, and the optimal decision for each segment is determined. In the second phase, in order to aid the company for making their plans for the next year, the segment that the customer will belong to next year should be predicted. Prediction of the future customer profitability segment is performed by using several machine learning algorithms, and the best performing model is selected. Using this best performing model, the company can predict the future (potential) profitability segment of the customer and make plans which include the optimal promotions that will be directed to the customers depending on their segments (these optimal promotions are the outcomes of the first phase). The proposed framework can be applied by practitioners in e-commerce companies which keep customer data.

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Section: Proposed Frameworkmentioning

confidence: 99%

Development of a hybrid model to plan segment based optimal promotion strategy

Ekinci

Güran

2022

International Journal of Market Research

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“…Indicator aggregation creates risks when it obscures important information or trends, often when favorable variances in one area are offsetting unfavorable variances in another (Finkler et al, 2017). This includes behavioral variations within donor segments where behavioral characteristics might be multi‐modal within a segment or market (Durango‐Cohen, 2013; Durango‐Cohen et al, 2013). For example, newly acquired donors tend to have significantly different behavioral patterns than those who have made at least a second gift (Schmidt & Dougherty, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

Leading and lagging indicators in fundraising management: A Canadian case study

Dougherty

2021

Journal of Philanthropy and Marketing

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Fundraisers, managers, and boards in the charitable sector are faced with an ongoing concern: how do they produce sustainable, predictable financial returns for their causes while minimizing the cost of fundraising? One way to address this is to improve the measurement of fundraising activities and this study asks how fundraising results should be communicated within organizations to support sustainability. This case study focuses on the fundraising program from one Canadian charity with a large, diversified fundraising program to examine how fundraisers can move beyond simple end‐of‐year financial ratios and implement one managerial technique, leading and lagging indicators, to improve long‐term financial performance. A literature review, internal interviews, and internal document review are used to identify 81 potential leading and lagging indicators that fundraisers can use to develop a suite of indicators that fit their context, activities, and goals and to identify potential challenges with implementing indicators. The role of organizational context and characteristics in selecting an appropriate suite of indicators is also discussed.

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“…Out of the wide range of marketing and strategic management tools, the well-known segmentation-targeting-positioning (STP) approach is widely adopted, both in fundraising theory (Mindak & Bybee, 1971;Sargeant & Shang, 2010;Smith & Beik, 1982;Wind, 1978, etc. ) and practice (Berger & Smith, 1997;Durango-Cohen, 2013;McKinley-Floyd & Shrestha, 2008, etc.). Classical research demonstrated that, within the charity market, demographics, lifestyle, opinions and attitudes did not influence a particular type of nonprofit organisation (Schlegelmilch & Tynan, 1989).…”

Section: Previous Research Of Segmentation In Online Fundraising ('E-mentioning

confidence: 99%

Local civil-mindedness on the Internet as the basis for fundraising segmentation: sociological, marketing determinants and the empirical analysis

Alfirević

Pavičić

Dorotić

et al. 2015

Economic Research-Ekonomska Istraživanja

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The purpose of this article is to introduce a new practice, i.e. tools for online fundraising in nonprofit organisations, based on the assessment of Internet-induced local civic mindedness (INLCM) as a segmentation approach. We suggest that this novel approach to fundraising segmentation can be performed as the extension to the already existing analyses, utilising the demographic and psychographic profiles. Based on nationally representative survey results of Croatian households, we develop an analytical procedure. It might help managers of community nonprofit organisations to target the relevant individuals by applying Internet marketing tools (such as Google Analytics) and approaches. Our analysis allows prediction of how likely it is that an individual (based on his or her demographic/psychographic profile) could be identified as INLCM (i.e. successfully targeted for fundraising efforts). Empirical results from Croatia demonstrate that such individuals do not have a lengthy Internet experience and do not use it frequently. The reported level of community belonging for these prospects is rather high, while their relevant Internet activities are related to maintaining the existing social ties and obtaining information about local organisations. It is interesting that they might be living in multi-generational households, either without their own underage children, or with a single child.

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Modeling contribution behavior in fundraising: Segmentation analysis for a public broadcasting station

Cited by 6 publications

References 26 publications

Development of a hybrid model to plan segment based optimal promotion strategy

Development of a hybrid model to plan segment based optimal promotion strategy

Leading and lagging indicators in fundraising management: A Canadian case study

Local civil-mindedness on the Internet as the basis for fundraising segmentation: sociological, marketing determinants and the empirical analysis

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