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

Hybrid clustering based on multi-criteria segmentation for higher education marketing

Market segmentation in higher education institutions is still rarely applied although it can assist in defining the right strategies and actions for the targeted market. The problem that often arises in market segmentation is how to exploit the preferences of students as customers. To overcome this, the combination of hybrid clustering method with multiple criteria will be applied to the case of the market segmentation for students in higher education institutions. The integration of geographic, demographic, psychographic, and behavioral criteria from students is used to get more insightful information about student preference. Data result of the integration will be processed using hybrid clustering using K-means and self organizing map (SOM) algorithm. The hybrid clustering conducted to get promising clustering result along with the visualization of segmentation. This study successfully produces five student segments. It received 1,386 as the Davies-Bouldin index (DBI) value and 2,752 as the quantization error (QE) value which indicates a good clustering result for market segmentation. In addition, the visualization of the clustering result can be seen in a hexagonal map

An Overview of the Use of Neural Networks for Data Mining Tasks

In the recent years the area of data mining has experienced a considerable demand for technologies that extract knowledge from large and complex data sources. There is a substantial commercial interest as well as research investigations in the area that aim to develop new and improved approaches for extracting information, relationships, and patterns from datasets. Artificial Neural Networks (NN) are popular biologically inspired intelligent methodologies, whose classification, prediction and pattern recognition capabilities have been utilised successfully in many areas, including science, engineering, medicine, business, banking, telecommunication, and many other fields. This paper highlights from a data mining perspective the implementation of NN, using supervised and unsupervised learning, for pattern recognition, classification, prediction and cluster analysis, and focuses the discussion on their usage in bioinformatics and financial data analysis tasks

Market Segmentation Analysis and Visualization Using K-Mode Clustering Algorithm for E-Commerce Business

Today all business organizations are adopting data driven strategies to generate more revenue out of their business. Growing startups are investing a lot of money in data economy to maximize profits of business organizations by developing intelligent tools backed by machine learning and artificial intelligence. The nature of BI tool depends on factor like business goals, size, model, technology etc. In this paper architecture of business intelligence tool and decision process has been discussed with a focus on market segmentation, based on user behavior analysis using k-mode clustering algorithm and user geographical distributions. The proposed toolkit also incorporates interactive visualizations and maps

Self-Organising Map Approach to Individual Profiles: Age, Sex and Culture in Internet Dating

A marked feature of recent developments in the networked society has been the growth in the number of people making use of Internet dating services. These services involve the accumulation of large amounts of personal information which individuals utilise to find others and potentially arrange offline meetings. The consequent data represent a challenge to conventional analysis, for example, the service that provided the data used in this paper had approximately 5,000 users all of whom completed an extensive questionnaire resulting in some 300 parameters. This creates an opportunity to apply innovative analytical techniques that may provide new sociological insights into complex data. In this paper we utilise the self-organising map (SOM), an unsupervised neural network methodology, to explore Internet dating data. The resulting visual maps are used to demonstrate the ability of SOMs to reveal interrelated parameters. The SOM process led to the emergence of correlations that were obscured in the original data and pointed to the role of what we call \'cultural age\' in the profiles and partnership preferences of the individuals. Our results suggest that the SOM approach offers a well established methodology that can be easily applied to complex sociological data sets. The SOM outcomes are discussed in relation to other research about identifying others and forming relationships in a network society.Self-Organising Map; Neural Network; Complex Data; Internet Dating; Age; Sex; Culture; Relationship; Visualisation

A news-based financial time series discretization

In this paper a new method for financial time series discretization that allows to take into account qualitative features about financial indicators is proposed. Qualitative features are extracted from financial news web sites and they are inserted into the learning phase of a recursive Self Organizing Map by means of a suitable parameter derived from statistical analysis of document collections. A postprocessing phase based on unsupervised clustering by U-Matrix method leads to the actual discretization of the time series. A real case application to a stock closing price series reveals that the inclusion of qualitative features leads to a more compact discretization of the series. This could be useful if a compact coding of the series is sought, for example in the preprocessing phase of a forecasting methodology

COMBINING VISUAL CUSTOMER SEGMENTATION AND RESPONSE MODELING

Customer Relationship Management (CRM) is a central part of Business Intelligence and sales campaigns are often used for improving customer relationships. This paper explores customer behavior during sales campaigns. We provide a visual, data-driven and efficient framework for customer segmentation and campaign-response modeling. First, the customers are grouped by purchasing behavior characteristics using a self-organizing map. To this behavioral segmentation model, we link segment migration patterns using feature plane representations. This enables visual monitoring of the customer base and tracking customer behavior before and during sales campaigns. In addition to the general segment migration patterns, this method provides the capability to drill down into each segment to visually explore the dynamics. The framework is applied to a department store chain with more than one million customers

Demographic market segmentation on usage of clothes in Ampara district: cloth marketers point of view

Demographic market segmentation studies have been conducted in different product or industry, in different countries, and in different time intervals. In addition to country- wide, time- wise, and product or industry-wise differences, there are demographic market segmentation studies in different methodologies. Thus, this study is conducted in cloth usage in Ampara District of Sri Lanka in 2015 using discriminant analysis. This study attempts to examine significant differences exist among the low usage group and high usage group in terms of demographic market segmentation and to develop a discriminant model between demographic market segmentation variables and usage groups. Based on previous empirical findings, a conceptual model is titled as selected demographic market segmentation variables and usage. This study considers 98 cloth marketers in Ampara District of Sri Lanka. This study adopted a non- probability sampling technique of convenience sampling. This study used a discriminant analysis as a new technique for demographic market segmentation. Descriptive statistics such as mean, standard deviation and coefficient of variation were used in this study. Wilky‘s Lambda and discriminant functional analysis were also made in this study. SPSS having the version of 22.0 was used in this study. It is found that there is significant difference among the low usage group and high usage group in terms of demographic market segmentation variables such as income, family size and age. Based on the results of the study, standardized canonical discriminant function has been formulated using standardized canonical discriminant function coefficient. Standardised canonical discriminant function has been created in this study

Rooftop-place suitability analysis for urban air mobility Hubs: A GIS and neural network approach

Dissertation submitted in partial fulfilment of the requirements for the degree of Master of Science in Geospatial TechnologiesNowadays, constant overpopulation and urban expansion in cities worldwide have led to several transport-related challenges. Traffic congestion, long commuting, parking difficulties, automobile dependence, high infrastructure maintenance costs, poor public transportation, and loss of public space are some of the problems that afflict major metropolitan areas. Trying to provide a solution for the future inner-city transportation, several companies have worked in recent years to design aircraft prototypes that base their technology on current UAVs. Therefore, vehicles with electrical Vertical Take-Off and Landing (eVTOL) technology are rapidly emerging so that they can be included in the Urban Air Mobility (UAM) system. For this to become a reality, space agencies, governments and academics are generating concepts and recommendations to be considered a safe means of transportation for citizens. However, one of the most relevant points for this future implementation is the suitable location of the potential UAM hubs within the metropolitan areas. Since although UAM vehicles can take advantage of infrastructure such as roofs of buildings to clear and land, several criteria must be considered to find the ideal location. As a solution, this thesis seeks to carry out an integral rooftop-place suitability analysis by involving both the essential variables of the urban ecosystem and the adequate rooftop surfaces for UAM operability. The study area selected for this research is Manhattan (New York, U.S), which is the most densely populated metropolitan area of one of the megacities in the world. The applied methodology has an unsupervised-data-driving and GIS-based approach, which is covered in three sections. The first part is responsible for analyzing the suitability of place when evaluating spatial patterns given by the application of Self-Organizing Maps on the urban ecosystem variables attached to the city census blocks. The second part is based on the development of an algorithm in Python for both the evaluation of the flatness of the roof surfaces and the definition of the UAM platform type suitable for its settlement. The final stage performs a combined analysis of the suitability indexes generated for the development of UAM hubs. Results reflect that 16% of the roofs in the study area have high integral suitability for the development of UAM hubs, where UAVs platforms and Vertistops (small size platforms) are the types that can be the most settled in Manhattan. The reproducibility self-assessment of this research when considering Nüst et al. [45] criteria (https://osf.io/j97zp/) is: 2, 1, 2, 1, 1 (input data, preprocessing, methods, computational environment, results). GitHub repository code is available in https://github.com/carlosjdelgadonovaims/rooftop-place_suitability_analysis_for_Urban_Air_Mobility_hub