Market segmentation and ideal point identification for new product design using fuzzy data compression and fuzzy clustering methods

In product design, various methodologies have been proposed for market segmentation, which group consumers with similar customer requirements into clusters. Central points on market segments are always used as ideal points of customer requirements for product design, which reflects particular compet...

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Bibliographic Details
Main Authors: Chan, Kit Yan, Kwong, C., Hu, B.
Format: Journal Article
Published: Elsevier 2011
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/16373
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author Chan, Kit Yan
Kwong, C.
Hu, B.
author_facet Chan, Kit Yan
Kwong, C.
Hu, B.
author_sort Chan, Kit Yan
building Curtin Institutional Repository
collection Online Access
description In product design, various methodologies have been proposed for market segmentation, which group consumers with similar customer requirements into clusters. Central points on market segments are always used as ideal points of customer requirements for product design, which reflects particular competitive strategies to effectively reach all consumers’ interests. However, existing methodologies ignore the fuzziness on consumers’ customer requirements. In this paper, a new methodology is proposed to perform market segmentation based on consumers’ customer requirements, which exist fuzziness. The methodology is an integration of a fuzzy compression technique for multi-dimension reduction and a fuzzy clustering technique. It first compresses the fuzzy data regarding customer requirements from high dimensions into two dimensions. After the fuzzy data is clustered into marketing segments, the centre points of market segments are used as ideal points for new product development. The effectiveness of the proposed methodology in market segmentation and identification of the ideal points for new product design is demonstrated using a case study of new digital camera design.
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institution Curtin University Malaysia
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publishDate 2011
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spelling curtin-20.500.11937-163732019-02-19T04:25:52Z Market segmentation and ideal point identification for new product design using fuzzy data compression and fuzzy clustering methods Chan, Kit Yan Kwong, C. Hu, B. fuzzy clustering fuzzy compression product design digital camera design Ideal point Market segmentation In product design, various methodologies have been proposed for market segmentation, which group consumers with similar customer requirements into clusters. Central points on market segments are always used as ideal points of customer requirements for product design, which reflects particular competitive strategies to effectively reach all consumers’ interests. However, existing methodologies ignore the fuzziness on consumers’ customer requirements. In this paper, a new methodology is proposed to perform market segmentation based on consumers’ customer requirements, which exist fuzziness. The methodology is an integration of a fuzzy compression technique for multi-dimension reduction and a fuzzy clustering technique. It first compresses the fuzzy data regarding customer requirements from high dimensions into two dimensions. After the fuzzy data is clustered into marketing segments, the centre points of market segments are used as ideal points for new product development. The effectiveness of the proposed methodology in market segmentation and identification of the ideal points for new product design is demonstrated using a case study of new digital camera design. 2011 Journal Article http://hdl.handle.net/20.500.11937/16373 10.1016/j.asoc.2011.11.026 Elsevier fulltext
spellingShingle fuzzy clustering
fuzzy compression
product design
digital camera design
Ideal point
Market segmentation
Chan, Kit Yan
Kwong, C.
Hu, B.
Market segmentation and ideal point identification for new product design using fuzzy data compression and fuzzy clustering methods
title Market segmentation and ideal point identification for new product design using fuzzy data compression and fuzzy clustering methods
title_full Market segmentation and ideal point identification for new product design using fuzzy data compression and fuzzy clustering methods
title_fullStr Market segmentation and ideal point identification for new product design using fuzzy data compression and fuzzy clustering methods
title_full_unstemmed Market segmentation and ideal point identification for new product design using fuzzy data compression and fuzzy clustering methods
title_short Market segmentation and ideal point identification for new product design using fuzzy data compression and fuzzy clustering methods
title_sort market segmentation and ideal point identification for new product design using fuzzy data compression and fuzzy clustering methods
topic fuzzy clustering
fuzzy compression
product design
digital camera design
Ideal point
Market segmentation
url http://hdl.handle.net/20.500.11937/16373