Application of artificial neural network in market segmentation: A review on recent trends

TL;DR

This paper reviews the application of artificial neural networks in market segmentation from 2000 to 2010, classifying existing research and identifying future trends to guide both academic and industry efforts.

Contribution

It provides the first comprehensive literature review and classification scheme for neural network-based market segmentation research, highlighting key models and future directions.

Findings

ANN applications are gaining significant research attention.

Self-organizing maps are the second most used in segmentation.

Data mining and intelligent systems are common models for segmentation.

Abstract

Despite the significance of Artificial Neural Network (ANN) algorithm to market segmentation, there is a need of a comprehensive literature review and a classification system for it towards identification of future trend of market segmentation research. The present work is the first identifiable academic literature review of the application of neural network based techniques to segmentation. Our study has provided an academic database of literature between the periods of 2000-2010 and proposed a classification scheme for the articles. One thousands (1000) articles have been identified, and around 100 relevant selected articles have been subsequently reviewed and classified based on the major focus of each paper. Findings of this study indicated that the research area of ANN based applications are receiving most research attention and self organizing map based applications are second in position to be used in segmentation. The commonly used models for market segmentation are data mining, intelligent system etc. Our analysis furnishes a roadmap to guide future research and aid knowledge accretion and establishment pertaining to the application of ANN based techniques in market segmentation. Thus the present work will significantly contribute to both the industry and academic research in business and marketing as a sustainable valuable knowledge source of market segmentation with the future trend of ANN application in segmentation.