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Applying a neural network (NN) to the targeting and prediction problems in target marketing poses some unique problems and difficulties unparalleled in other business applications of neural computations. We discuss several of these issues in this article, as applied to solo mailings, offer remedies to some, and discuss possible solutions to others. A numerical example, using NN backpropagation models and involving realistic data, is used to exemplify some of the resulting issues.
Zahavi et al. (Wed,) studied this question.
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