Using the Taguchi method for effective market segmentation

Authors:
Chien-Wen Hong
Affiliations:
Department of Information Management, Chia-Nan University of Pharmacy & Science, Tainan, Taiwan, ROC
Venue:
Expert Systems with Applications: An International Journal
Year:
2012

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Abstract

This study proposes a clustering method based on Taguchi method for effective market segmentation. To select appropriate initial seeds, we propose the use of Taguchi method as the tools. This study compares the results of the proposed a Self-Organizing Map (SOM) for application to a real-world case of tea-beverage market segmentation. The results show that the proposed Taguchi method may improve segmentation performance.