A Comparison of Methods to Separate Treatment from Self-Selection Effects in an Online Banking Setting

Journal of Business Research, Vol. 66, Issue 9, 1272-1278

Posted: 6 Aug 2014

See all articles by Sonja Gensler

Sonja Gensler

University of Muenster - Institute for Value-Based Marketing

Peter S.H. Leeflang

University of Groningen - Faculty of Economics and Business

Bernd Skiera

University of Frankfurt - Department of Marketing

Date Written: 2013

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.

Keywords: Self-selection effects, Matching methods, Instrumental variables method, Control function method, Online use

JEL Classification: M1, M3

Suggested Citation

Gensler, Sonja and Leeflang, Peter S.H. and Skiera, Bernd, A Comparison of Methods to Separate Treatment from Self-Selection Effects in an Online Banking Setting (2013). Journal of Business Research, Vol. 66, Issue 9, 1272-1278. Available at SSRN: https://ssrn.com/abstract=2476335

Sonja Gensler

University of Muenster - Institute for Value-Based Marketing ( email )

Am Stadtgraben 13-15
Muenster, 48143
Germany

Peter S.H. Leeflang

University of Groningen - Faculty of Economics and Business ( email )

Postbus 72
9700 AB Groningen
Netherlands

Bernd Skiera (Contact Author)

University of Frankfurt - Department of Marketing ( email )

Theodor-Adorno-Platz 4
Frankfurt am Main, 60323
Germany
+49 69 798 34640 (Phone)
+49 69 798 35001 (Fax)

HOME PAGE: http://www.skiera.de

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