2018
DOI: 10.14419/ijet.v7i3.12.16505
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Approaches to Clustering in Customer Segmentation

Abstract: Customer Relationship Management(CRM) has always played a crucial role as a market strategy for providing organizations with the quintessential business intelligence for building, managing and developing valuable long-term customer relationships. A number of business enterprises have come to realize the significance of CRM and the application of technical expertise to achieve competitive advantage. This study explores the importance of Customer Segmentation as a core function of CRM as well as the various mode… Show more

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Cited by 43 publications
(15 citation statements)
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“…6. The number of clusters given by these methods confirms the rule of thumb that suggests that the number of clusters should not be few or many to tailor marketing strategy and optimize resources [19]. It also makes sense in the eyes of the researchers to have optimum clusters of less than five in the banking industry.…”
Section: B Data Description and Processingsupporting
confidence: 61%
“…6. The number of clusters given by these methods confirms the rule of thumb that suggests that the number of clusters should not be few or many to tailor marketing strategy and optimize resources [19]. It also makes sense in the eyes of the researchers to have optimum clusters of less than five in the banking industry.…”
Section: B Data Description and Processingsupporting
confidence: 61%
“…It should be noted that in the case of contextual advertising, marketers have a fairly extensive array of information that characterizes the behavioral activity of product users. Therefore, the second approach to calculating the lift coefficient is to use cluster analysis [16,17] to construct the Lorentz curve. In order to assess the uniformity of user interest in an ad, as well as to compare ads with their interests, it is necessary to proceed to cluster analysis of user reaction to ads [18].…”
Section: Methodsmentioning
confidence: 99%
“…However, in the case of an ad campaign, this selection may change dynamically. Therefore, hierarchical clustering methods are used as the most appropriate method [17], which do not require a training sample and allow for dividing clients into groups based on characteristics.…”
Section: Mathematical Methods and Algorithms Of Business Informaticsmentioning
confidence: 99%
“…Then, the WSS according to the number of clusters were plotted as curves, as shown in Figure 5. The location of a bend in the graph is generally regarded as an indicator of the number of appropriate clusters [35]. When the bending point was not visible obviously, the largest distance of a line that is perpendicular from a straight line drawn between the point of the first cluster and the last cluster indicated the optimal number of clusters.…”
Section: Application Of Morphometric Data To Analyze the Knee Prostheses For Thaismentioning
confidence: 99%