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The benefits of shapley-value in key-driver analysis
KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.).
2021 (English)In: Applied Marketing Analytics, ISSN 2054-7544, Vol. 6, no 3, p. 269-278Article in journal (Refereed) Published
Abstract [en]

Linear (and other types of) regression are often used in what is referred to as ‘driver modelling’ in customer satisfaction studies. The goal of such research is often to determine the relative importance of various sub-components of the product or service in terms of predicting and explaining overall satisfaction. Driver modelling can also be used to determine the drivers of value, likelihood to recommend, etc. A common problem is that the independent variables are correlated, making it diffcult to get a good estimate of the importance of the ‘drivers’. This problem is well known under conditions of severe multicollinearity, and alternatives like the Shapley-value approach have been proposed to mitigate this issue. This paper shows that Shapley-value may even have benefts in conditions of mild collinearity. The study compares linear regression, random forests and gradient boosting with the Shapley-value approach to regression and shows that the results are more consistent with bivariate correlations. However, Shapley-value regression does result in a small decrease in k-fold validation results.

Place, publisher, year, edition, pages
Henry Stewart Publications , 2021. Vol. 6, no 3, p. 269-278
Keywords [en]
Customer satisfaction, Driver modelling, Gradient boosting, Random forests, Regression, Shapley-value
National Category
Business Administration
Identifiers
URN: urn:nbn:se:kth:diva-305834Scopus ID: 2-s2.0-85101483658OAI: oai:DiVA.org:kth-305834DiVA, id: diva2:1620409
Note

QC 20211215

Available from: 2021-12-15 Created: 2021-12-15 Last updated: 2022-06-25Bibliographically approved

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Bosch, Nathan

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  • de-DE
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