An intelligent system for customer targeting: a data mining approach
Decision Support SystemsPublished 28 February 2003
YongSeog Kim, W. Nick Street
Citations157
SJR quartileQ1
SJR score2.37
SNIP2.59
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TL;DR
A data mining approach for market managers that uses artificial neural networks (ANNs) guided by genetic algorithms (GAs) that significantly outperforms the baseline algorithms in terms of hit rate and expected net profit on key target points is proposed.
Abstract
We propose a data mining approach for market managers that uses artificial neural networks (ANNs) guided by genetic algorithms (GAs). Our predictive model allows the selection of an optimal target point where expected profit from direct mailing is maximized. Our approach also produces models that are easier to interpret by using a smaller number of predictive features. Through sensitivity analysis, we also show that our chosen model significantly outperforms the baseline algorithms in terms of hit rate and expected net profit on key target points.
Keywords
Computer ScienceBusiness, Management and Accounting
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