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

Scalable Inference of Customer Similarities from Interactions Data using Dirichlet Processes

Under the sociological theory of homophily, people who are similar to one another are more likely to interact with one another. Marketers often have access to data on interactions among customers from which, with homophily as a guiding principle, inferences could be made about the underlying similarities. However, larger networks face a quadratic explosion in the number of potential interactions that need to be modeled. This scalability problem renders probability models of social interactions computationally infeasible for all but the smallest networks. In this paper we develop a probabilistic framework for modeling customer interactions that is both grounded in the theory of homophily, and is flexible enough to account for random variation in who interacts with whom. In particular, we present a novel Bayesian nonparametric approach, using Dirichlet processes, to moderate the scalability problems that marketing researchers encounter when working with networked data. We find that this framework is a powerful way to draw insights into latent similarities of customers, and we discuss how marketers can apply these insights to segmentation and targeting activities

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

Latent Class Model with Application to Speaker Diarization

In this paper, we apply a latent class model (LCM) to the task of speaker diarization. LCM is similar to Patrick Kenny's variational Bayes (VB) method in that it uses soft information and avoids premature hard decisions in its iterations. In contrast to the VB method, which is based on a generative model, LCM provides a framework allowing both generative and discriminative models. The discriminative property is realized through the use of i-vector (Ivec), probabilistic linear discriminative analysis (PLDA), and a support vector machine (SVM) in this work. Systems denoted as LCM-Ivec-PLDA, LCM-Ivec-SVM, and LCM-Ivec-Hybrid are introduced. In addition, three further improvements are applied to enhance its performance. 1) Adding neighbor windows to extract more speaker information for each short segment. 2) Using a hidden Markov model to avoid frequent speaker change points. 3) Using an agglomerative hierarchical cluster to do initialization and present hard and soft priors, in order to overcome the problem of initial sensitivity. Experiments on the National Institute of Standards and Technology Rich Transcription 2009 speaker diarization database, under the condition of a single distant microphone, show that the diarization error rate (DER) of the proposed methods has substantial relative improvements compared with mainstream systems. Compared to the VB method, the relative improvements of LCM-Ivec-PLDA, LCM-Ivec-SVM, and LCM-Ivec-Hybrid systems are 23.5%, 27.1%, and 43.0%, respectively. Experiments on our collected database, CALLHOME97, CALLHOME00 and SRE08 short2-summed trial conditions also show that the proposed LCM-Ivec-Hybrid system has the best overall performance