Journal of the Operational Research Society

, Volume 59, Issue 5, pp 714–718

A note on coarse classifying in acceptance scorecards

Technical Note

DOI: 10.1057/palgrave.jors.2602358

Cite this article as:
Jung, K. & Thomas, L. J Oper Res Soc (2008) 59: 714. doi:10.1057/palgrave.jors.2602358


Traditionally, in credit and behavioural scoring one assumes that as all consumers have essentially the same product, its features will not affect whether the consumer defaults or not. Hence, one coarse classifies the characteristics concentrating only on the default ratio. As products and their operational features become customized for each individual (the very purpose of acceptance scoring), then decisions like whether the customer will accept the product or not must depend on the features offered. This paper investigates how one can deal with this dependency when coarse classifying the characteristics.


credit scoringcoarse classifyingdata miningproduct customization

Copyright information

© Palgrave Macmillan Ltd 2007

Authors and Affiliations

  1. 1.Kyungsung UniversityBusanSouth Korea
  2. 2.University of SouthamptonSouthamptonUK