<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This article attempts to explain and predict the termination of relationships in telecommunications services by using the hybrid C&amp;RT-logit model. The combination of decision trees (C&amp;RT algorithm) with the logistic model enriches the model interpretation and sometimes improves the accuracy of prediction. Decision trees permit to detect interactions among variables and make the model resistant to outliers and to lack of data. On the other hand, the logistic model can extend the interpretation by using odds ratios. The solution delivered by the hybrid approach was compared with the decision tree model and the logistic model. Due to the difficulty in obtaining the real dataset from the Polish market, it was decided to build a model based on the data obtained from the repository <ext-link ext-link-type="uri" xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="http://www.dataminingconsultant.com/DMMM.htm">http://www.dataminingconsultant.com/DMMM.htm</ext-link>
. The models’ performance was estimated by using popular measures such as accuracy, recall, precision, true negative rate, G-mean, F measure and lift charts.</p></abstract>

This article attempts to explain and predict the termination of relationships in telecommunications services by using the hybrid C&RT-logit model. The combination of decision trees (C&RT algorithm) with the logistic model enriches the model interpretation and sometimes improves the accuracy of prediction. Decision trees permit to detect interactions among variables and make the model resistant to outliers and to lack of data. On the other hand, the logistic model can extend the interpretation by using odds ratios. The solution delivered by the hybrid approach was compared with the decision tree model and the logistic model. Due to the difficulty in obtaining the real dataset from the Polish market, it was decided to build a model based on the data obtained from the repository http://www.dataminingconsultant.com/DMMM.htm
. The models’ performance was estimated by using popular measures such as accuracy, recall, precision, true negative rate, G-mean, F measure and lift charts.

Hybrid C&amp;RT-Logit Models In Churn Analysis

Cracow University of Economics, Department of Market Analysis and Marketing Research, Rakowicka 27, 31-510 Cracow, Poland

Folia Oeconomica Stetinensia

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Hybrid C&RT-Logit Models In Churn Analysis

{"article-title":"Hybrid C&RT-Logit Models In Churn Analysis"}

This article attempts to explain and predict the termination of relationships in telecommunications services by using the hybrid C&RT-logit model. The...

Hybrid C&RT-Logit Models In Churn Analysis

Published Online: Jun 03, 2015

Page range: 37 - 52

Received: Apr 14, 2014

Accepted: Oct 24, 2014

DOI: https://doi.org/10.1515/foli-2015-0006

Keywords
churn analysis, hybrid C&RT-logit model

© University of Szczecin

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Hybrid C&RT-Logit Models In Churn Analysis

Published Online: Jun 03, 2015

Page range: 37 - 52

Received: Apr 14, 2014

Accepted: Oct 24, 2014

DOI: https://doi.org/10.1515/foli-2015-0006

Keywordschurn analysis, hybrid C&RT-logit model

© University of Szczecin

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
churn analysis, hybrid C&RT-logit model