Conditional market segmentation by neural networks: a Monte-Carlo study

An artificial neural network (ANN) algorithm is proposed that incorporates both market segmentation and discriminant (regression) analysis of the segments. The method simultaneously estimates the models relating consumer characteristics to market segments, i.e., subjects are assigned to (unique) seg...

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Vydané v:Journal of retailing and consumer services Ročník 6; číslo 4; s. 237 - 248
Hlavný autor: Natter, Martin
Médium: Journal Article
Jazyk:English
Vydavateľské údaje: Oxford Elsevier Ltd 01.10.1999
Oxford, UK :Butterworth-Heinemann, 1994
ISSN:0969-6989, 1873-1384
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Shrnutí:An artificial neural network (ANN) algorithm is proposed that incorporates both market segmentation and discriminant (regression) analysis of the segments. The method simultaneously estimates the models relating consumer characteristics to market segments, i.e., subjects are assigned to (unique) segments so that subjects within a class show similar purchase behavior and share the same characteristics (psychographics/sociodemographics). Parameters of all models are estimated by the backpropagation algorithm. The performance of the ANN methodology is assessed in a Monte-Carlo study. In contrast to the usual stepwise approach adopted in segmentation studies, our study found that simultaneous segmentation and discrimination are preferable for finding an overall optimum in that this way clusters are formed not only to create homogeneous submarkets but also to show a good dicriminatory behavior.
Bibliografia:ObjectType-Article-2
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content type line 14
ISSN:0969-6989
1873-1384
DOI:10.1016/S0969-6989(98)00008-3