General Questions re Sales Incremental Response: What is the formula for calculating incremental response when you have treatment and control when you are given summary variables such as the overall sample(N), # responders out of sample in both Treatment and Control groups, discounted Sales revenue (discount is offer to treatment group where purchased/responded) vs. Sales revenue with no offer discount (did not get message) to Control group but still purchased, cost of the marketing campaign, and cost of producing product? I was trying to learn these concepts outside SAS Enterprise Miner to help understand more thoroughly before it does predictions but have not found any documentation on calculating this by hand. Assuming cost of marketing campaign applies to Overall sample(N) not just those in Treatment group since control group also got message without treatment (in other words still cost ie..mailing postage..etc)? Or does marketing campaign cost only apply to Treatment group? Assuming control group has to get some message to respond since they were part of sample? Assuming Cost of producing product would be based on Overall sample(N) * Cost? Or is it based only those that were the responders in the Treatment and Control groups? Appreciate if anyone has context on this since I'm trying to understand it conceptually before it goes into Enterprise Miner for predictions..etc
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