Consumer behavior fuzziness in the new market environments

  • Authors:
  • Rawshan Basha;Jamal Ameen

  • Affiliations:
  • Al Ghurair University, Dubai, UAE;University of Glamorgan, UK and Kurdistan Regional Government, Erbil, Iraq

  • Venue:
  • NNECFSIC'12 Proceedings of the 12th WSEAS international conference on Neural networks, fuzzy systems, evolutionary computing & automation
  • Year:
  • 2011

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Abstract

Advances in internet technology over the past decades have revolutionarised the way consumers behave and extended marketing beyond its traditional boundaries. In parallel, challenges relating to consumer and businesses behaviour have increased manifold. This paper attempts to assess the fuzzy actions of buying behaviour from a multinational viewpoint using data that have been collected on customer risk assessment while attempting to buy a product on the internet. The survey covered 270 male and female participants of different nationality and different levels of income and education. Logistic regression is used to identify factors that are significant in the action of purchasing leading to a sensitivity of 0.92 and specificity of 0.81 and this is followed by the use of AnswerTree (CHAID) to formulate what-if decision strategies to help decision makers improve their selling and targeting options. The sensitivity and specificity of the latter approach were 0.95 and 0.79 respectively and led to the establishment of a set of decision rules each with their probability of success ranging from 0.56 to 1. None of the factors of gender, geographic location or income were significant in the process.