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Article

Customer Behavior Analysis Using Rough Set Approach

Sri Krishna College of Engineering and Technology, Department of Computer Science and Engineering, Coimbatore, Tamil Nadu, India
J. Theor. Appl. Electron. Commer. Res. 2013, 8(2), 21-33; https://doi.org/10.4067/S0718-18762013000200003
Submission received: 5 December 2011 / Accepted: 12 December 2012 / Published: 1 August 2013

Abstract

The customer relationship management (CRM) is a business methodology used to build long term profitable customers by analyzing customer needs and behaviors. The customer behavior is analyzed by choosing important attributes in the customer database. The customers are then segmented into groups according to their attribute values. The rules are generated using rule induction algorithms to describe the customers in each group. These rules can be used by the entrepreneur to predict the behavior of their new customers and to vary the attraction process for existing customers. In this paper a new rule algorithm has been proposed based on the concepts of rough set theory. Its performance has been compared with LEM2 (Learning from Examples Module, version 2) algorithm, an existing rough set based rule induction algorithm. Real data set of the customer transaction is used for analysis. Recency(R), Frequency (F), Monetary (M) and Payment (P) are the attributes chosen for analyzing customer data. The proposed algorithm on average achieves 0.439% increase in sensitivity, 0.007% increase in specificity, 0.151% increase in accuracy, 0.014% increase in positive predictive value, 0.218% increase in negative predictive value and 0.228% increase in F-measure when compared to LEM2 algorithm.
Keywords: Clustering; Customer relationship management; K-means; LEM2; Rough set theory; Rule induction; RFM; RFMP Clustering; Customer relationship management; K-means; LEM2; Rough set theory; Rule induction; RFM; RFMP

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MDPI and ACS Style

Dhandayudam, P.; Krishnamurthi, I. Customer Behavior Analysis Using Rough Set Approach. J. Theor. Appl. Electron. Commer. Res. 2013, 8, 21-33. https://doi.org/10.4067/S0718-18762013000200003

AMA Style

Dhandayudam P, Krishnamurthi I. Customer Behavior Analysis Using Rough Set Approach. Journal of Theoretical and Applied Electronic Commerce Research. 2013; 8(2):21-33. https://doi.org/10.4067/S0718-18762013000200003

Chicago/Turabian Style

Dhandayudam, Prabha, and Ilango Krishnamurthi. 2013. "Customer Behavior Analysis Using Rough Set Approach" Journal of Theoretical and Applied Electronic Commerce Research 8, no. 2: 21-33. https://doi.org/10.4067/S0718-18762013000200003

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