Investigation of giving behavior to united way using log-linear modeling and discriminant analysis: An empirical study

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. Research support for this study was provided by the School of Business, University of Louisville