Predicting customer churn in mobile industry using data mining technology
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.
Keywords
Acknowledgements
This work was supported by the Sogang University Research Grant of 201410023.01.
Citation
Lee, E.-B., Kim, J. and Lee, S.-G. (2017), "Predicting customer churn in mobile industry using data mining technology", Industrial Management & Data Systems, Vol. 117 No. 1, pp. 90-109. https://doi.org/10.1108/IMDS-12-2015-0509
Publisher
:Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited