Preview

Segmentation

Powerful Essays
Open Document
Open Document
7968 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Segmentation
www.elsevier.com/locate/atoures

Annals of Tourism Research, Vol. 32, No. 1, pp. 93–111, 2005 Ó 2005 Elsevier Ltd. All rights reserved. Printed in Great Britain 0160-7383/$30.00

doi:10.1016/j.annals.2004.05.001

MARKET SEGMENTATION
A Neural Network Application
Jonathan Z. Bloom University of Stellenbosch, South Africa
Abstract: The objective of the research is to consider a self-organizing neural network for segmenting the international tourist market to Cape Town, South Africa. A backpropagation neural network is used to complement the segmentation by generating additional knowledge based on input–output relationship and sensitivity analyses. The findings of the self-organizing neural network indicate three clusters, which are visually confirmed by developing a comparative model based on the test data set. The research also demonstrated that Cape Metropolitan Tourism could deploy the neural network models and track the changing behavior of tourists within and between segments. Marketing implications for the Cape are also highlighted. Keywords: segmentation, SOM neural network, input–output analysis, sensitivity analysis, deployment. Ó 2005 Elsevier Ltd. All rights reserved. ´ ´ Resume: Segmentation du marche: une application du reseau neuronal. Le but de la ´ ´ recherche est de considerer un reseau neuronal auto-organisateur pour segmenter le marche ´ ´ ´ touristique international a Cape Town, en Afrique du Sud. On utilise un reseau neuronal de ` ´ retropropogation pour completer la segmentation en generant des connaissances comple´ ´ ´ ´ ´ mentaires basees sur une relation input–output et des analyses de sensibilite. Les resultats ´ ´ ´ du reseau neuronal auto-organisateur indiquent trois groupes qu’on confirme visuellement ´ en developpant un modele comparatif base sur l’ensemble des donnees d’essai. La recherche ´ ` ´ ´ a montre aussi que le Tourisme Metropolitain du Cap pourrait utiliser les modeles de reseau ´ ´ ` ´ neuronal et suivre la trace du



References: Bek, M., T. Grosboll-Poulsen, and M. Kristoffersen 2002 Evolutionary Trained Kohonen Networks as Classifiers for Human Utterances. Internal Working Paper. Leeds: University of Leeds. Blum, A. 1992 Neural Networks in C++: An Object-orientated Framework for Building Connectionist Systems. New York: Wiley. Crusader Systems 1998 Basic Modelgen Version 1.6. Pretoria: Crusader Systems. Deboeck, G. 1994 Trading on the Edge: Neural, Genetic and Fuzzy Systems for Chaotic Financial Markets. New York: Wiley. De Tienne, K., and L. Lewis 2003 Artificial Neural Networks for the Management Researcher: The State of the Art. . Galloway, G. 2002 Psychographic Segmentation of Park Visitor Markets: Evidence for the Utility of Sensation Seeking. Tourism Management 23:581–596. Goonatilake, S. 1995 Intelligent Systems for Finance and Business: An overview. In Intelligent Systems for Finance and Business, S. Goonatilake and P. Treleaven, eds., pp. 1–28. New York: Wiley. Hornik, K., M. Stinchcombe, and H. White 1989 Multilayer Feedforward Networks are Universal Approximators. Neural Networks 2:359–366. Jang, S. C., A. Morrison, and J. O’Leary 2002 Benefit Segmentation of Japanese Pleasure Travelers to the USA and Canada: Selecting Target Markets based on the Profitability and Risk of Individual Market Segments. Tourism Management 23:367–378. Jeng, J.-M., and D. Fesenmaier 1996 A Neural Network Approach to Discrete Choice Modeling. In Recent Advances in Tourism Marketing Research, D. Fesenmaier, J. O’Leary and M. Uysal, eds., pp. 119–144. London: The Haworth Press. Kaastra, I., and M. Boyd 1996 Designing a Neural Network for Forecasting Financial and Economic Time Series. Neurocomputing 10:215–236. Kim, J., S. Wei, and H. Ruys 2003 Segmenting the Market of Western Australia Senior Tourists using Artificial Neural Networks. Tourism Management 24:25–34. Kohonen, T. 1997 Self-Organizing Maps. Berlin: Springer. Kotler, P. 2001 Marketing Management. Englewood Cliffs: Prentice-Hall. Law, R., and N. Au 1999 A Neural Network Model to Forecast Japanese Demand for Travel to Hong Kong. Tourism Management 20:89–97. Masters, T. 1993 Practical Neural Network Recipes in C++. New York: Academic Press. Mazanec, J. 1992 Classifying Tourists into Market Segments: A Neural Network Approach. Journal of Travel and Tourism Marketing 1(1):39–59. 1995 Positioning Analysis with Self-Organizing Maps: An Exploratory Study on Luxury Hotels. Cornell Hotel and Restaurant Administration Quarterly 36(6):80–95. 1999 Simultaneous Positioning and Segmentation Analysis with Topologically Ordered Feature Maps: A Tour Operator Example. Journal of Retailing and Consumer Services 6:219–235. 2001 Neural Market Structure Analysis: Novel Topology-Sensitive Methodology. European Journal of Marketing 35:894–914. JONATHAN BLOOM 111 McCord-Nelson, M., and W. Illingworth 1993 A Practical Guide to Neural Nets. New York: Academic Press. Mok, C., and T. Iverson 2000 Expenditure Based Segmentation: Taiwanese Tourists to Guam. Tourism Management 21:299–305. Pattie, D., and J. Snyder 1996 Using a Neural Network to Forecast Visitor Behavior. Annals of Tourism Research 23:151–164. Saarenvirta, G. 1998 Mining Customer Data. DB2 Magazine 3(3):10–20. Statsoft 1998 Statistica Version 5.5. Tulsa: Statsoft. Tsaur, S.-H., Y.-C. Chiu, and C.-H. Huang 2002 Determinants of Guest Loyalty to International Tourist Hotels––A Neural Network Approach. Tourism Management 23:397–405. Two Crows 1999 Introduction to Data Mining and Knowledge Discovery (3rd ed.). Potomac: Two Crows. Venugopal, V., and W. Baets 1994 Neural Networks and Statistical Techniques in Marketing Research: A Conceptual Comparison. Marketing Intelligence and Planning 12(7):30–38. Submitted 16 June 2003. Resubmitted 20 January 2004. Resubmitted 29 March 2004. Accepted 7 May 2004. Final version 20 May 2004. Refereed anonymously. Coordinating Editor: Josef A. Mazanec

You May Also Find These Documents Helpful

  • Powerful Essays

    Within travel and tourism inbound and domestic tourism are frequently changing, there are many internal and external factors which have a major impact and contribute to these changes. In this assignment I am going to analyse 3 internal and 3 external factors which affect the travel and tourism industry.…

    • 1690 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Dong J. K., Woo G. K. and Jin S. H., A perceptual mapping mapping of online travel agencies and preference attributes. Tourist Management 28 (2007) 591-603…

    • 1201 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Scottland Segmentation

    • 415 Words
    • 2 Pages

    In order to do the segmentation of the market some marketing tools were used such as: SPACC, Sinus- Milieu. The SPACC model was made based on the ages and family status to define, which segment can be the most profitable…

    • 415 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Tourism is one of the leading components of world trade, accounting for about 6 percent of world exports of goods and services. That is why it is important to understand and evaluate it. Where tourists go, why, what is the trend, can it changed?…

    • 2429 Words
    • 10 Pages
    Better Essays
  • Good Essays

    All of these figures demonstrate how outside media/marketing factors, personal and psychological factors can influence a persons perception of a destination. (Ryan and Gu 2008) point out that the image itself is the beginning point of tourists expectation, which is eventually a determinant of tourists behaviour. The behaviour of the tourists and their motivations to visit a destination then determines what type of tourist they will be and what type of tourism will…

    • 2209 Words
    • 9 Pages
    Good Essays
  • Powerful Essays

    Block, R.A. "Evaluating Distribution Channels with Perceptual Mapping ," SS etc. , 1989 , pp. 115-124. Hauser , ]. and F. Koppelman. “ Alternative Perceptual Mapping Techniques: Relative Accuracy and Usefulness ," Journal ofMarketing Research, Vo l. XV I, November 1979 , pp. 495-506. Jain , A. “ A Predictive Study in Perceptual and Evaluative Mapping ," Journal of Academy of Marketing Sdence, Fa 1l 1978 , Vo l. 6, #4 , pp. 300-313. Johnson , R. M. “ Adaptive Perceptual Mapping ," Sawtooth Software Conference on Perceptual Mapping, Conjoint Analysis , and Computer Interviewing , 1987 , pp. 143-158. Lautman , M. R., L.M. Percy , and G. R. Kordish. “ Campaigns from Multidimensional Scaling," Journal 。f Advertising Research , Vo l. 18 , #3 , June 1978 , pp. 35-40. Neidell , C. A.“ The Use of Nonmetric Multidimensional Scaling in Marketing Analysis ," Journal of Marketing, Vo l. 33 , October 1969 , pp. 37-43. Siemer, R.H.“ Using Perceptual Mapping for Market-Entry Decisions ," 1989 Sawtooth Software Conference Proceedings, 1989 , pp. 107-114. Silk , A. and G. Urban. “ Pre-Test-Market Evaluation of New Packaged Goods: A Model and Measurement Methodology ," Journal ofMarketing Research. Vo l. XV , May 1978 , pp. 171-19 1. Singson , R.L.“ Multidimensional Sca1ing Analysis of Store Image and Shopping Behavior," Journal of Retailing, Vol. 51 , #2 , Summer 1975. Smith , R.E. and R. F. Lusch. "How Advertising Can Position a Brand ," Journal of Advertising Research, Vo l. 16 , February 1976 , pp. 37-43. Stannard , C. I. "Perceptual Mapping and Cluster Analysis: Some Problems and Solutions ," 1989 Sawtooth Software Conference Proceedings, pp. 133月 142.…

    • 4494 Words
    • 18 Pages
    Powerful Essays
  • Best Essays

    Event Research Marketing

    • 3527 Words
    • 15 Pages

    References: Hanafizadeh, P. & Mirzazadeh, M. (2011). Visualizing market segmentation using self-organizing maps and Fuzzy Delphi method – ADSL market of a telecommunication company. Expert Systems with Applications, 38(1), 198–205.…

    • 3527 Words
    • 15 Pages
    Best Essays
  • Good Essays

    Forte Hotel Case

    • 533 Words
    • 3 Pages

    Reviewing the output analysis, of the four product concepts that Forte is currently considering the Professional 1 and Tourist have the highest market share (12.5%), and similar Revenue Indexes. Next, I took into account the costs of the attributes for each product concept and normalized the costs by 365 so that it and the Revenue Index were on a per day basis. Subtracting the costs from the Revenue Index and multiplying this adjusted number by the market share, Tourist concept had the highest revenue potential. (See Exhibit 1).…

    • 533 Words
    • 3 Pages
    Good Essays
  • Better Essays

    References: Bicak, H.A., Altinay, M. & Jenkins, H. (2005) 'Forecasting tourism demand of North Cyprus ', Journal of Hospitality and Leisure Marketing, Vol. 12, pp. 87-99. Chopra, S and Meindl, P (2007) Supply Chain Management: Strategy, Planning & Operation, 3rd edition, Pearson Education, New Delhi. Choo S. and Mokhtarian, P.L. (2007) 'Telecommunications and travel demand and supply: Aggregate structural equation models for the US ', Transportation Research Part A, 41 pp. 4 -18. Dennis, N.P.S. (2002) 'Long-term forecasts and flight schedule pattern for a medium-sized European airport ', Journal of Air Transport Management, Vol. 8, pp. 313-324. Dritsakis, N. and Athanasiadis, S. (2000) 'An econometric model of tourist demand: The case of Greece ', Journal of Hospitality and Leisure Marketing, Vol. 7, pp. 39-49. Hamzacebi, C. (2008) 'Improving artificial neural networks ' performance in seasonal time series forecasting ', Information Sciences, Vol. 178, pp. 4550-4559. IATA International traffic statistics, 2008a, Facts & Figures - 2008 Traffic Results, Montreal, Quebec, viewed 30 November,…

    • 4852 Words
    • 20 Pages
    Better Essays
  • Powerful Essays

    Tourist Destinations

    • 6887 Words
    • 28 Pages

    In this assessment I would be analysing the main tourist destinations and generators of the world in terms of visitor numbers and income generation. I would also be analysing statistics to determine tourism destination developments and predict future developments.…

    • 6887 Words
    • 28 Pages
    Powerful Essays
  • Good Essays

    Crm in Casinos

    • 1113 Words
    • 5 Pages

    With the advent of Customer Relationship Management (CRM) technology, casinos have found a solution to more accurately classify its patrons and properly direct its marketing efforts to the right customer segment. The essential objective of CRM is to attract and maintain loyal, profitable customers. Loyal because it is common knowledge that longtime customers tend to patronize more and are easier and cheaper to maintain rather than trying to acquire new customers. Profitable because this is what makes or breaks the business. With the use of…

    • 1113 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    It is argued that cognitive learning is when a customer is unfamiliar with the product or service, but as a result of the experiences will modify their actions on future occasions (Aslin and Rothschild, 1987; Ushadevi, 2013). The cognitive approach supports the theory of consumer behaviour which in cognitive terms is the theory of the customer decision model. The consumer decision model decisions are influenced by 2 main factors namely; stimuli which is processed as a result of previous experiences and external variables (environmental influences or individual differences) (Aslin and Rothschild, 1987; Ushadevi, 2013). The environmental influences include: culture; social class; personal influence; family and situation. Individual Influences include: motivation, involvement, knowledge, personality, values and lifestyles (Abdallat and Emam, 2001). Cognitive development contributes to the expenditure of tourists through repeat visits which is instigated by past experiences (McFarlane and Boxall, 1998; Ushadevi,…

    • 1479 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    References: Cahill, D., (1997), How Consumers Pick a Hotel: Strategic Segmentation and Target Marketing, The Haworth Press, Inc., New York…

    • 1882 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    The generic capabilities of GIS indicate that this technology has tremendous potential in tourism in the visualization term, but its applications are limited in tourism field due to lack of general database of those visitors. For instance, GIS is unable to illustrate the origin and destination of visitors. What is more, it cannot predict the tourists’ expenditure patterns, motivation of travel, transportation selection, etc. In order to pursue a further investigation, Bahaire and Elliot-White categorized…

    • 1162 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Rural Tourism

    • 1287 Words
    • 6 Pages

    Tourists carry different images of their destinations, and their motives to go there vary. They are heterogeneous in nature.…

    • 1287 Words
    • 6 Pages
    Good Essays