Latent class analysis for segmenting preferences of investment bonds

Market segmentation is a key component of conjoint analysis which addresses consumer preference heterogeneity. Members in a segment are assumed to be homogenous in their views and preferences when worthing an item but distinctly heterogenous to members of other segments. Latent class methodology is one of the several conjoint segmentation procedures that overcome the limitations of aggregate analysis and a-priori segmentation. The main benefit of Latent class models is that market segment membership and regression parameters of each derived segment are estimated simultaneously. The Latent class model presented in this paper uses mixtures of multivariate conditional normal distributions to analyze rating data, where the likelihood is maximized using the EM algorithm. The application focuses on customer preferences for investment bonds described by four attributes; currency, coupon rate, redemption term and price. A number of demographic variables are used to generate segments that are accessible and actionable.peer-reviewe

Application of artificial neural network in market segmentation: A review on recent trends

Despite the significance of Artificial Neural Network (ANN) algorithm to market segmentation, there is a need of a comprehensive literature review and a classification system for it towards identification of future trend of market segmentation research. The present work is the first identifiable academic literature review of the application of neural network based techniques to segmentation. Our study has provided an academic database of literature between the periods of 2000-2010 and proposed a classification scheme for the articles. One thousands (1000) articles have been identified, and around 100 relevant selected articles have been subsequently reviewed and classified based on the major focus of each paper. Findings of this study indicated that the research area of ANN based applications are receiving most research attention and self organizing map based applications are second in position to be used in segmentation. The commonly used models for market segmentation are data mining, intelligent system etc. Our analysis furnishes a roadmap to guide future research and aid knowledge accretion and establishment pertaining to the application of ANN based techniques in market segmentation. Thus the present work will significantly contribute to both the industry and academic research in business and marketing as a sustainable valuable knowledge source of market segmentation with the future trend of ANN application in segmentation.Comment: 24 pages, 7 figures,3 Table

Segmenting preferences for investment bonds using latent variable mixture models

Market segmentation is a key component of conjoint analysis which addresses consumer preference heterogeneity. Members in a segment are assumed to be homogenous in their views and preferences when worthing an item but distinctly heterogenous to members of other segments. Latent class methodology is one of the several conjoint segmentation procedures that overcome the limitations of aggregate analysis and a-priori segmentation. The main benefit of Latent class models is that market segment membership and regression parameters of each derived segment are estimated simultaneously. The Latent class model presented in this paper uses mixtures of multivariate conditional normal distributions to analyze rating data, where the likelihood is maximized using the EM algorithm. The application focuses on customer preferences for investment bonds described by four attributes; currency, coupon rate, redemption term and price. A number of demographic variables are used to generate segments that are accessible and actionable.peer-reviewe

Discussing Different Clustering Methods for the Aggregation of Demand Response and Distributed Generation

With the introduction of the Smart Grid context in the current network, it will be necessary to improve business models to include the use of distributed generation and demand response programs regarding the remuneration of participants as a form of incentive. Throughout this article a methodology is presented which will aggregate generation units and consumers participating in DR programs. A comparison of clustering methods will be carried out in order to understand which one of them will be the most appropriate for the scenario studied. After grouping all the resources, the remuneration of the groups are made considering the maximum rate in each group. The hierarchical clustering proved to be the most appropriate because it grouped the resources so that the total cost for the aggregator was the minimum.The present work was done and funded in the scope of the following projects: CONTEST Project (P2020-23575), and UID/EEA/00760/2013 funded by FEDER Funds through, COMPETE program and by National Funds through FCT.info:eu-repo/semantics/publishedVersio

Virtual cluster scheduling through the scheduling graph

This paper presents an instruction scheduling and cluster assignment approach for clustered processors. The proposed technique makes use of a novel representation named the scheduling graph which describes all possible schedules. A powerful deduction process is applied to this graph, reducing at each step the set of possible schedules. In contrast to traditional list scheduling techniques, the proposed scheme tries to establish relations among instructions rather than assigning each instruction to a particular cycle. The main advantage is that wrong or poor schedules can be anticipated and discarded earlier. In addition, cluster assignment of instructions is performed using another novel concept called virtual clusters, which define sets of instructions that must execute in the same cluster. These clusters are managed during the deduction process to identify incompatibilities among instructions. The mapping of virtual to physical clusters is postponed until the scheduling of the instructions has finalized. The advantages this novel approach features include: (1) accurate scheduling information when assigning, and, (2) accurate information of the cluster assignment constraints imposed by scheduling decisions. We have implemented and evaluated the proposed scheme with superblocks extracted from Speclnt95 and MediaBench. The results show that this approach produces better schedules than the previous state-of-the-art. Speed-ups are up to 15%, with average speed-ups ranging from 2.5% (2-Clusters) to 9.5% (4-Clusters).Peer ReviewedPostprint (published version

C-Vine copula mixture model for clustering of residential electrical load pattern data

The ongoing deployment of residential smart meters in numerous jurisdictions has led to an influx of electricity consumption data. This information presents a valuable opportunity to suppliers for better understanding their customer base and designing more effective tariff structures. In the past, various clustering methods have been proposed for meaningful customer partitioning. This paper presents a novel finite mixture modeling framework based on C-vine copulas (CVMM) for carrying out consumer categorization. The superiority of the proposed framework lies in the great flexibility of pair copulas towards identifying multi-dimensional dependency structures present in load profiling data. CVMM is compared to other classical methods by using real demand measurements recorded across 2,613 households in a London smart-metering trial. The superior performance of the proposed approach is demonstrated by analyzing four validity indicators. In addition, a decision tree classification module for partitioning new consumers is developed and the improved predictive performance of CVMM compared to existing methods is highlighted. Further case studies are carried out based on different loading conditions and different sets of large numbers of households to demonstrate the advantages and to test the scalability of the proposed method

Crossing Roads of Federated Learning and Smart Grids: Overview, Challenges, and Perspectives

Consumer's privacy is a main concern in Smart Grids (SGs) due to the sensitivity of energy data, particularly when used to train machine learning models for different services. These data-driven models often require huge amounts of data to achieve acceptable performance leading in most cases to risks of privacy leakage. By pushing the training to the edge, Federated Learning (FL) offers a good compromise between privacy preservation and the predictive performance of these models. The current paper presents an overview of FL applications in SGs while discussing their advantages and drawbacks, mainly in load forecasting, electric vehicles, fault diagnoses, load disaggregation and renewable energies. In addition, an analysis of main design trends and possible taxonomies is provided considering data partitioning, the communication topology, and security mechanisms. Towards the end, an overview of main challenges facing this technology and potential future directions is presented

Segmenting Markets by Bagged Clustering: Young Chinese Travelers to Western Europe.

Market segmentation is ubiquitous in marketing. Hierarchical and nonhierarchical methods are popular for segmenting tourism markets. These methods are not without controversy. In this study, we use bagged clustering on the push and pull factors of Western Europe to segment potential young Chinese travelers. Bagged clustering overcomes some of the limitations of hierarchical and nonhierarchical methods. A sample of 403 travelers revealed the existence of four clusters of potential visitors. The clusters were subsequently profiled on sociodemographics and travel characteristics. The findings suggest a nascent young Chinese independent travel segment that cannot be distinguished on push factors but can be differentiated on perceptions of the current independent travel infrastructure in Western Europe. Managerial implications are offered on marketing and service provision to the young Chinese outbound travel market