Modeling consumer acceptance probabilities

11 years 9 months ago
Modeling consumer acceptance probabilities
This paper investigates how to estimate the likelihood of a customer accepting a loan offer as a function of the offer parameters and how to choose the optimal set of parameters for the offer to the applicant in real time. There is no publicly available data set on whether customers accept the offer of a financial product-the features of which are changing from offer to offer. Thus, we develop our own data set using a Fantasy Student Current Account. In this paper, we suggest three approaches to determine the probability that an applicant with characteristics will accept offer characteristics using the Fantasy Student Current Account data. Firstly, a logistic regression model is applied to obtain the acceptance probability. Secondly, a linear programming is adapted to obtain the acceptance probability model. To build a model, we assume there is a dominant offer characteristic, where the probability of accepting the offer increases (or decreases) monotonically as this characteristic�...
L. C. Thomas, Ki Mun Jung, Steve D. Thomas, Y. Wu
Added 12 Dec 2010
Updated 12 Dec 2010
Type Journal
Year 2006
Where ESWA
Authors L. C. Thomas, Ki Mun Jung, Steve D. Thomas, Y. Wu
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