A novel utility-based model for identifying the customer value in online shopping Online publication date: Fri, 06-Jun-2014
by Zahra Tabaei; Mohammad Fathian
International Journal of Electronic Business (IJEB), Vol. 11, No. 2, 2014
Abstract: This study focuses on identifying customer's utility in online shopping. The utility is defined as the level of customer satisfaction in the online shopping experience. Our study is consisted of three phases: in the first phase, customers are segmented by K-means algorithm according to some demographic and preference properties. The optimal number of cluster is determined by DUNN index. In the second phase, one-dimensional utility functions are identified according to each significant factor in online context. By testing the utility independency, the multiplicative utility functions are used for identifying the global customer's utility. In the third phase, a novel customer value model is developed with utility usage. The proposed RFMU model can identify customer value better than RFM model and can resolve the main drawback of RFM model in predicting the value of new customers. This model is tested in one electronic retailer that provides flower and plant products and services.
Online publication date: Fri, 06-Jun-2014
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Electronic Business (IJEB):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com