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User value identification based onĀ an improved consumer value segmentation algorithm.
- Source :
- Kybernetes; 2023, Vol. 52 Issue 10, p4495-4530, 36p
- Publication Year :
- 2023
-
Abstract
- Purpose: The purpose of this study is to propose a new consumer value segmentation method for low-dimensional dense market datasets to quickly detect and cluster the most profitable customers for the enterprises. Design/methodology/approach: In this study, the comprehensive segmentation bases (CSB) with richer meanings were obtained by introducing the weighted recency-frequency-monetary (RFM) model into the common segmentation bases (SB). Further, a new market segmentation method, the CSB-MBK algorithm was proposed by integrating the CSB model and the mini-batch k-means (MBK) clustering algorithm. Findings: The results show that our proposed CSB model can reflect consumers' contributions to a market, as well as improve the clustering performance. Moreover, the proposed CSB-MBK algorithm is demonstrably superior to the SB-MBK, CSB-KMA and CSB-Chameleon algorithms with respect to the Silhouette Coefficient (SC), the Calinski-Harabasz (CH) Index , the average running time and superior to the SB-MBK, RFM-MBK and WRFM-MBK algorithms in terms of the inter-market value and characteristic differentiation. Practical implications: This paper provides a tool for decision-makers and marketers to segment a market quickly, which can help them grasp consumers' activity, loyalty, purchasing power and other characteristics in a target market timely and achieve the precision marketing. Originality/value: This study is the first to introduce the CSB-MBK algorithm for identifying valuable customers through the comprehensive consideration of the clustering quality, consumer value and segmentation speed. Moreover, the CSB-MBK algorithm can be considered for applications in other markets. [ABSTRACT FROM AUTHOR]
- Subjects :
- CONSUMERS
ALGORITHMS
MARKETING
TARGET marketing
MARKET segmentation
Subjects
Details
- Language :
- English
- ISSN :
- 0368492X
- Volume :
- 52
- Issue :
- 10
- Database :
- Complementary Index
- Journal :
- Kybernetes
- Publication Type :
- Periodical
- Accession number :
- 173344823
- Full Text :
- https://doi.org/10.1108/K-01-2022-0049