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An Extended RFM Model for Customer Behaviour and Demographic Analysis in Retail Industry

Author

Listed:
  • Ho Thanh
  • Nguyen Suong
  • Nguyen Huong
  • Nguyen Ngoc
  • Man Dac-Sang
  • Le Thao-Giang

    (1 University of Economics and Law, Ho Chi Minh City, Vietnam, Vietnam National University, Ho Chi Minh City, Vietnam)

Abstract

Customer segmentation has become one of the most innovative ways which help businesses adopt appropriate marketing campaigns and reach targeted customers. The RFM model and machine learning combination have been widely applied in various areas.

Suggested Citation

  • Ho Thanh & Nguyen Suong & Nguyen Huong & Nguyen Ngoc & Man Dac-Sang & Le Thao-Giang, 2023. "An Extended RFM Model for Customer Behaviour and Demographic Analysis in Retail Industry," Business Systems Research, Sciendo, vol. 14(1), pages 26-53, September.
    • Handle: RePEc:bit:bsrysr:v:14:y:2023:i:1:p:26-53:n:3
    DOI: 10.2478/bsrj-2023-0002
    as

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    References listed on IDEAS

    as
    1. Heldt, Rodrigo & Silveira, Cleo Schmitt & Luce, Fernando Bins, 2021. "Predicting customer value per product: From RFM to RFM/P," Journal of Business Research, Elsevier, vol. 127(C), pages 444-453.
    2. Verhoef, Peter C. & Lemon, Katherine N. & Parasuraman, A. & Roggeveen, Anne & Tsiros, Michael & Schlesinger, Leonard A., 2009. "Customer Experience Creation: Determinants, Dynamics and Management Strategies," Journal of Retailing, Elsevier, vol. 85(1), pages 31-41.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Customer segmentation; RFMD model; K-Means; One hot encoding; K-Prototypes; Cohort analysis; machine learning;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

    Statistics

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