Lowering the targeting threshold in a marketing model can lead to which outcome?

Lowering the targeting threshold in a marketing model can lead to which outcome?

• A. Increases TP volume even if FP rises
• B. Decreases TP while lowering FP
• C. Has no effect on expected value
• D. Decreases FP while increasing TP

Answer: (B)

Lowering the targeting threshold acts as a tighter filter for who gets targeted. When you tighten this filter, you end up engaging fewer people overall, so you capture fewer true positives because there are simply fewer opportunities to convert actual responders. At the same time, you avoid targeting many non-responders, so false positives decline as well. In this setup, both TP and FP move downward, which is why the best answer describes a decrease in TP while also lowering FP. The net effect on value depends on how much each drop costs or pays, but the directional change matches the idea of targeting fewer people with a stricter threshold.

Lowering the targeting threshold acts as a tighter filter for who gets targeted. When you tighten this filter, you end up engaging fewer people overall, so you capture fewer true positives because there are simply fewer opportunities to convert actual responders. At the same time, you avoid targeting many non-responders, so false positives decline as well. In this setup, both TP and FP move downward, which is why the best answer describes a decrease in TP while also lowering FP. The net effect on value depends on how much each drop costs or pays, but the directional change matches the idea of targeting fewer people with a stricter threshold.