Market segmentation is a vital part of an organization’s marketing because it provides the fundamental framework necessary for effective marketing efforts. In recent years, due to their high performance in engineering, artificial neural networks have also been applied in management research.
Self-organizing maps, a technique of unsupervised neural networks, are often used for clustering or
dimensional reduction. This study employs a modified two-stage approach (SOMs and K-means) to
group customers, compares the performance between the tandem approach and direct K-means clustering, and tests for the existence of clusters and segments. The test results show that a media promotion variable would be a basis for segmentation. Based on the segmenting results, a marketing communication strategy is presented to cope with customers’ expectations.
Asian Journal of Management and Humanity Sciences 1(1)：1-15