TY - JOUR
T1 - Using cluster analysis and DEA-discriminant analysis to predict group membership of new customers
AU - Saen, Reza Farzipoor
PY - 2013/1/1
Y1 - 2013/1/1
N2 - To understand the value of customers and target the most profitable customers, this paper uses cluster analysis to classify customers into four groups as platinum, gold, iron, and lead. Then, to predict group membership of new customers, data envelopment analysis-discriminant analysis (DEA-DA) model is applied. This paper operationalises the concept proposed by Zeithaml et al. (2001), ('The customer pyramid: creating and serving profitable customers', California Management Review, Vol. 43, No. 4, pp.118-142) on forming the customer pyramid. A case study demonstrates the application of the proposed approach.
AB - To understand the value of customers and target the most profitable customers, this paper uses cluster analysis to classify customers into four groups as platinum, gold, iron, and lead. Then, to predict group membership of new customers, data envelopment analysis-discriminant analysis (DEA-DA) model is applied. This paper operationalises the concept proposed by Zeithaml et al. (2001), ('The customer pyramid: creating and serving profitable customers', California Management Review, Vol. 43, No. 4, pp.118-142) on forming the customer pyramid. A case study demonstrates the application of the proposed approach.
KW - Cluster analysis
KW - Customer pyramid
KW - DA
KW - Data envelopment analysis
KW - Data envelopment analysis-discriminant analysis
KW - DEA
KW - DEA-DA
KW - Discriminant analysis
UR - http://www.scopus.com/inward/record.url?scp=84877281825&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84877281825&partnerID=8YFLogxK
U2 - 10.1504/IJBEX.2013.053618
DO - 10.1504/IJBEX.2013.053618
M3 - Article
AN - SCOPUS:84877281825
SN - 1756-0047
VL - 6
SP - 348
EP - 360
JO - International Journal of Business Excellence
JF - International Journal of Business Excellence
IS - 3
ER -