Predicting customer churn in mobile industry using data mining technology

Eui-Bang Lee · Jinwha Kim · Sang-Gun Lee

62 citations0/0 files storedIndustrial Management & Data Systems

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Customer churn and segmentation Customer Service Quality and Loyalty Data Mining and Machine Learning Applications

Abstract

Purpose The purpose of this paper is to identify the influence of the frequency of word exposure on online news based on the availability heuristic concept. So that this is different from most churn prediction studies that focus on subscriber data. Design/methodology/approach This study examined the churn prediction through words presented the previous studies and additionally identified words what churn generate using data mining technology in combination with logistic regression, decision tree graphing, neural network models, and a partial least square (PLS) model. Findings This study found prediction rates similar to those delivered by subscriber data-based analyses. In addition, because previous studies do not clearly suggest the effects of the factors, this study uses decision tree graphing and PLS modeling to identify which words deliver positive or negative influences. Originality/value These findings imply an expansion of churn prediction, advertising effect, and various psychological studies. It also proposes concrete ideas to advance the competitive advantage of companies, which not only helps corporate development, but also improves industry-wide efficiency.

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References

1974Judgment under Uncertainty: Heuristics and Biases 1975Judgment under Uncertainty: Heuristics and Biases 1973Availability: A heuristic for judging frequency and probability 1996Advertising Value and Advertising on the Web 2008The Impact of Marketing-Induced Versus Word-of-Mouth Customer Acquisition on Customer Equity Growth 2008Handling class imbalance in customer churn prediction 2006Bagging and Boosting Classification Trees to Predict Churn 2007The chain from customer satisfaction via word-of-mouth referrals to new customer acquisition

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