A methodology for product segmentation using sale transactions

Date

2018-06-28

Author

Peker, Serhat
Koçyiğit, Altan
Eren, Pekin Erhan

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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This paper presents a novel methodology for product segmentation using customers' transactions on products. The proposed methodology introduces FMC model, and utilizes this model's features and clustering algorithms to group products into segments. The applicability of the proposed approach has been demonstrated on data collected by a supermarket chain. The results show that the proposed methodology provides an efficient tool that can be used to identify different product segments and to gain valuable insights about these distinct groups. The resulting product segments can help managers in the inventory management and developing marketing strategies.

Subject Keywords

Product taxonomy, Segmentation, Clustering, Supermarket, RFM, KDD

URI

https://hdl.handle.net/11511/31756

DOI

https://doi.org/10.23919/mipro.2018.8400226

Collections

Graduate School of Informatics, Conference / Seminar

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Citation Formats

S. Peker, A. Koçyiğit, and P. E. Eren, “A methodology for product segmentation using sale transactions,” 2018, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/31756.