Visualizing market segmentation using self-organizing maps and Fuzzy Delphi method – ADSL market of a telecommunication company

Hanafizadeh, Payam; Mirzazadeh, Meysam

doi:10.1016/j.eswa.2010.06.045

Cited by 71 publications

(30 citation statements)

References 35 publications

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“…More information on the topic can be found in Kohonen (, ). SOM has been used as a decision‐making tool in business‐related problems such as market segmentation (Hanafizadeh & Mirzazadeh, ) and group technology (Kiang, Kulkarni, & Tam, ; Chattopadhyay, Dan, & Majumdar, ).…”

Section: Product Positioning Methodsmentioning

confidence: 99%

Product Positioning Using a Self‐Organizing Map and the Rings of Influence

2013

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In this article, we propose a new product positioning method based on the neural network methodology of a self-organizing map. The method incorporates the concept of rings of influence, where a firm evaluates individual consumers and decides on the intensity to pursue a consumer, based on the probability that this consumer will purchase a competing product. The method has several advantages over earlier work. First, no limitations are imposed on the number of competing products and second, the method can position multiple products in multiple market segments. Using simulations, we compare the new product positioning method with a quasi-Newton method and find that the new method always approaches the best solution obtained by the quasi-Newton method. The quasi-Newton method, however, is dependent on the initial positions of the new products, with the majority of cases ending in a local optimum. Furthermore, the computational time required by the quasi-Newton method increases exponentially, while the time required by the new method is small and remains almost unchanged, when the number of new products positioned increases. We also compute the expected utility that a firm will provide consumers by offering its products. We show that as the intensity with which a firm pursues consumers increases, the new method results in nearoptimal solutions in terms of market share, but with higher expected utility provided to consumers when compared to that obtained by a quasi-Newton method. Thus, the new method can serve as a managerial decision-making tool to compare the short-term market share objective with the long-term expected utility that a firm will provide to consumers, when it positions its products and intensifies its effort to attract consumers away from competition.

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Section: Product Positioning Methodsmentioning

confidence: 99%

Product Positioning Using a Self‐Organizing Map and the Rings of Influence

2013

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“…As a solution to this issue, Keropyan and Gil-Lafuente 45 present a fuzzy based Hungarian method that allow assigning different loyalty programs to customers with different characteristics in order to provide a model that helps decision makers deciding what kind of customer loyalty programs they should offer to their clients from different segments. Hanafizadeh and Mirzazadeh 46 also study market segmentation problem of a telecommunication company. They present a technique which integrates Fuzzy Delphi method and self-organizing maps (SOM) to cluster customers according to their various characteristic variables such as demographics, socio-economic factors, and geographic location.…”

Section: Related Workmentioning

confidence: 99%

Stochastic Capacity Acquisition and Allocation Model for Bandwidth Brokers under Fuzzy Volume Based Pricing Scheme

Turan¹,

Kasap²,

et al. 2016

IJCIS

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In this paper, bandwidth acquisition and allocation problem of a telecommunications Bandwidth Broker (BB) is analyzed under uncertain end-user capacity requests and pay-per-byte (volume) based pricing policy. Furthermore, related objective function coefficients such as revenue and costs are modeled as fuzzy numbers in order to cope with vague market conditions. By integrating fuzzy mathematical programming and two-stage stochastic programming techniques, deterministic equivalent of single objective profit maximization problem of BB is obtained solved to optimality. In addition, infrastructure related performance measures such as delay and jitter amounts in the network are modelled via stochastic parameters that obey some known probability distributions. Two performance statistics namely fuzzy Expected Value of Perfect Information (EVPI) and fuzzy Value of Stochastic Solution (VSS) are defined to demonstrate the efficiency of proposed methodology compared to deterministic approach. In addition, several secondary performance measures such as expected capacity utilization, expected demand fulfilment ratio and capacity loss are calculated under different problem settings. In conclusion, numerical experiments showed that fuzzy stochastic method provides more profit depending upon problem size in compression with deterministic strategy.

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“…Fuzzy Delphi method, self-organizing maps (SOM) and a visualization techniques have been developed and successfully implemented to cluster customers according to their various characteristic variables and visualize segments by producing colorful market maps (Hanafizadeh & Mirzazadeh, 2011). A firm that operates in multiple regions, a market segmentation method that can integrate data from different regions to obtain a set of generalized segmentation rules can greatly influence the competitiveness of the company.…”

Section: Classification Framework -Ann Dimensionmentioning

confidence: 99%

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

Chattopadhyay¹,

Dan²,

Majumdar³

et al. 2012

MSL

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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.

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Visualizing market segmentation using self-organizing maps and Fuzzy Delphi method – ADSL market of a telecommunication company

Cited by 71 publications

References 35 publications

Product Positioning Using a Self‐Organizing Map and the Rings of Influence

Product Positioning Using a Self‐Organizing Map and the Rings of Influence

Stochastic Capacity Acquisition and Allocation Model for Bandwidth Brokers under Fuzzy Volume Based Pricing Scheme

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

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