Journal of Socioeconomics and Development
Vol 5, No 1 (2022): April

Development of direct marketing strategy for banking industry: The use of a Chi-squared Automatic Interaction Detector (CHAID) in deposit subscription classification

Anwar Fitrianto (Department of Statistics IPB University)
Wan Zuki Azman Wan Muhamad (Institute of Engineering Mathematics, Universiti Malaysia Perlis, Malaysia)
Budi Susetyo (Department of Statistics, IPB University)



Article Info

Publish Date
25 Feb 2022

Abstract

A comparison between Chi-squared Automatic Interaction Detector (CHAID) and logistic regression analysis was performed for classification problems on bank direct marketing data. CHAID Performance Comparison and comparison with Logistic Regression (LR) performance were also conducted. Priority performance with two statistical measures was evaluated: classification accuracy and sensitivity in the presence of data containing categorical imbalances. Random over sampling (ROS) was then applied to deal with class balance problems to get better performance of CHAID analysis. Segmentation analysis was also performed using the CHAID approach to improve the performance of the analysis results. CHAID outperforms LR because of its advantages that it can be used to perform segmentation modeling. Direct marketers should pay attention to traits are Duration, Month, Contact, and Housing. To get a higher subscription, the bank must extend the call duration. Based on these results, the banking industry needs to prepare regulations related to human resources, infrastructure, costs, and government support to achieve higher subscriptions.JEL Classification  A10; C10; G21

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Journal Info

Abbrev

jsed

Publisher

Subject

Agriculture, Biological Sciences & Forestry Arts Humanities Economics, Econometrics & Finance Environmental Science Social Sciences

Description

Journal of Socioeconomics and Development (JSeD) is managed by The Study Program of Socioeconomics (Agribusiness), Agriculture Faculty, Widyagama University of Malang. JSeD is published biannually in April and October, and available in printed and online version. ...