Method for modeling market response rates

A method for modeling marketing response rates. The method is used to evaluate and filter large contact lists with the aim of accomplishing two goals. The method of the present invention uses an internal experience database and an external demographic database, coupled with variable screening schemes and non-parametric modeling techniques. The method comprises a number of steps. First, a data acquisition step associates descriptor variables with prospects. Second, a variable selection step identifies the descriptor variables in order to identify prospects most likely to respond to the direct mailing. Third, a model selection step examines and assesses a number of competitive algorithms, and selects the algorithm that will best predict the response rate. Fourth, a parameter estimation step ensures the best fit of data once an algorithm is chosen. Finally, a validation step ensures the robustness of the modeling process.