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Customer Segmentation Using Multiple Instance Clustering and Purchasing Behaviors

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Progress in Artificial Intelligence and Pattern Recognition (IWAIPR 2018)

Part of the book series: Lecture Notes in Computer Science ((LNIP,volume 11047))

Abstract

On-line companies usually maintain complex information systems for capturing records about Customer Purchasing Behaviors (CPBs) in a cost-effective manner. Building prediction models from this data is considered a crucial step of most Decision Support Systems used in business informatics. Segmentation of similar CPB is an example of such an analysis. However, existing methods do not consider a strategy for quantifying the interactions between customers taking into account all entities involved in the problem. To tackle this issue, we propose a customer segmentation approach based on their CPB profile and multiple instance clustering. More specifically, we model each customer as an ordered bag comprised of instances, where each instance represents a transaction (order). Internal measures and modularity are adopted to evaluate the resultant segmentation, thus supporting the reliability of our model in business marketing analysis.

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Correspondence to Ivett Fuentes .

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Fuentes, I., NĂ¡poles, G., Arco, L., Vanhoof, K. (2018). Customer Segmentation Using Multiple Instance Clustering and Purchasing Behaviors. In: HernĂ¡ndez Heredia, Y., MiliĂ¡n NĂºĂ±ez, V., Ruiz Shulcloper, J. (eds) Progress in Artificial Intelligence and Pattern Recognition. IWAIPR 2018. Lecture Notes in Computer Science(), vol 11047. Springer, Cham. https://doi.org/10.1007/978-3-030-01132-1_22

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  • DOI: https://doi.org/10.1007/978-3-030-01132-1_22

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-01131-4

  • Online ISBN: 978-3-030-01132-1

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