Comparing methods to separate treatment from self-selection effects in an online banking setting

Gensler,Sonja S.,Leeflang,Peter S H P.S.H.,Skiera,Bernd B.,


Abstract
The literature discusses several methods to control for self-selection effects but provides little guidance on which method to use in a setting with a limited number of variables. The authors theoretically compare and empirically assess the performance of different matching methods and instrumental variable and control function methods in this type of setting by investigating the effect of online banking on product usage. Hybrid matching in combination with the Gaussian kernel algorithm outperforms the other methods with respect to predictive validity. The empirical finding of large self-selection effects indicates the importance of controlling for these effects when assessing the effectiveness of marketing activities. © 2012 Elsevier Inc.



Publication type
Article in Journal

Peer reviewed
Yes

Publication status
Published

Year
2013

Journal
Journal of Business Research

Volume
66

Issue
9

Start page
1278

Pages range
1272-1278

Language
English

ISSN
01482963

DOI

Affiliation
Rijksuniversiteit Groningen,Libera Universita Internazionale degli Studi Sociali Guido Carli,Johann Wolfgang Goethe Universitat Frankfurt am Main