The Use of Big Data and Its Effects in a Diffusion Forecasting Model for Korean Reverse Mortgage Subscribers

Jinah Yang, Daiki Min and Jeenyoung Kim
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Jinah Yang: School of Business, Ewha Womans University, 52 Ewhayeodae-gil, Seodaemun-gu, Seoul 121791, Korea
Daiki Min: School of Business, Ewha Womans University, 52 Ewhayeodae-gil, Seodaemun-gu, Seoul 121791, Korea
Jeenyoung Kim: Graduate School (Big Data Analytics), Ewha Womans University, 52 Ewhayeodae-gil, Seodaemun-gu, Seoul 121791, Korea

Sustainability, 2020, vol. 12, issue 3, 1-17

Abstract: In recent years, big data has been widely used to understand consumers’ behavior and opinions. With this paper, we consider the use of big data and its effects in the problem of projecting the number of reverse mortgage subscribers in Korea. We analyzed web-news, blog post, and search traffic volumes associated with Korean reverse mortgages and integrated them into a Generalized Bass Model (GBM) as a part of the exogenous variables representing marketing effort. We particularly consider web-news volume as a proxy for marketer-generated content (MGC) and blog post and search traffic volumes as proxies for user-generated content (UGC). Empirical analysis provides some interesting findings: First, the GBM by incorporating big data is helpful for forecasting the sales of Korean reverse mortgages, and second, the UGC as an exogenous variable is more useful for predicting sales volume than the MGC. The UGC can explain consumers’ interest relatively well. Additional sensitivity analysis supports that the UGC is important for increasing sales volume. Finally, prediction performance is different between blog posts and search traffic volumes.

Keywords: generalized bass model; big data; exogenous variables; sales prediction; Korean reverse mortgage (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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