Journal
JOURNAL OF MARKETING RESEARCH
Volume 43, Issue 2, Pages 276-286Publisher
SAGE PUBLICATIONS INC
DOI: 10.1509/jmkr.43.2.276
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In this article, the authors explore the bagging and boosting classification techniques. They apply the two techniques to a customer database of an anonymous U.S. wireless telecommunications company, and both significantly improve accuracy in predicting churn. This higher predictive performance could ultimately lead to incremental profits for companies that use these methods. Furthermore, the results recommend the use of a balanced sampling scheme when predicting a rare event from large data sets, but this requires an appropriate bias correction.
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