Market segmentation based on hierarchical self-organizing map for markets of multimedia on demand

Authors:
Chihli Hung;Chih-Fong Tsai
Affiliations:
Department of Management Information Systems, Chung Yuan Christian University, Taiwan;Department of Accounting and Information Technology, National Chung Cheng University, Taiwan
Venue:
Expert Systems with Applications: An International Journal
Year:
2008

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Abstract

Customer relationship management (CRM) aims at understanding and measuring the true value of customers. Market segmentation is a general method for successful CRM. This paper focuses on approaches that provide a human manager with a visualized decision making tool for market segmentation. We propose a novel market segmentation approach, namely the hierarchical self-organizing segmentation model (HSOS), for dealing with a real-world data set for market segmentation of multimedia on demand in Taiwan. HSOS is able to give a human manager a general idea of market segmentation step by step, which can be considered as a potential alternative approach to other hierarchical cluster approaches for market segmentation.