Abstract
The recent economic crisis not only reduces the profit of retailer stores but also incurs the significant losses caused by increasing the late-payment rate of credit cards. Under this pressure, the scope of credit scoring needs to be broadened to the customer management after delinquency occurs. In doing so, this study clusters the delinquent customers in a department store into homogeneous segments by using a self-organizing map. This study then develops credit prediction models to recognize the repayment patterns of each segment by using a Cox proportional hazard analysis. The credit-scoring models are evaluated and the managerial implications of the study are provided.
Original language | English |
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Pages (from-to) | 2177-2185 |
Number of pages | 9 |
Journal | Journal of Computational Information Systems |
Volume | 6 |
Issue number | 7 |
State | Published - Jul 2010 |
Keywords
- Credit management
- Risk intelligence