Abstract
Giving behavior toward a charitable organization is modeled by two different procedures: discriminant analysis and a log-linear model. Although the discriminant procedure is beter known in marketing, the log-linear approach has less restrictive model assumptions and may more accurately represent the conceptual basis of consumer decisions. Two situations are considered: (1) a simple binary classification of the giving decision, and (2) a three-group case of no gift, small, and large gift. Utilizing a large data base and a holdout sample for comparative purposes, the log-linear procedure is found to be an attractive alternative to discriminant analysis in terms of correct classification of individuals.
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