Quantitative evaluation of clusterings for marketing applications: a web portal case study

Authors:
Carmen Rebelo;Pedro Quelhas Brito;Carlos Soares;Alípio Jorge;Rui Brandão
Affiliations:
Faculty of Sciences, University of Porto, Portugal;LIAAD, INESC Porto LA, Porto and Faculty of Economics, University of Porto, Portugalo;LIAAD, INESC Porto LA, Porto and Faculty of Economics, University of Porto, Portugalo;LIAAD, INESC Porto LA, Porto and Faculty of Economics, University of Porto, Portugalo;Infinivista
Venue:
EPIA'07 Proceedings of the aritficial intelligence 13th Portuguese conference on Progress in artificial intelligence
Year:
2007

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Abstract

The potential value of a market segmentation for a company is usually assessed in terms of six criteria: identifiability, substantiality, accessibility, responsiveness, stability and actionability. These are widely accepted as essential criteria, but they are difficult to quantify. Quantification is particularly important in early stages of the segmentation process, especially when automatic clustering methods are employed. With such methods it is easy to produce a large number of segmentations but only the most interesting ones should be selected for further analysis. In this paper, we address the problem of how to quantify the value of a segmentation according to the criteria above. We propose several measures and test them on a case study, consisting of a segmentation of portal users.