A methodology for product segmentation using sale transactions

Peker S., KOÇYİĞİT A., Erhan Eren P. E.

41st International Convention on Information and Communication Technology, Electronics and Microelectronics, MIPRO 2018, Opatija, Croatia, 21 - 25 May 2018, pp.1249-1253 identifier identifier

  • Publication Type: Conference Paper / Full Text
  • Doi Number: 10.23919/mipro.2018.8400226
  • City: Opatija
  • Country: Croatia
  • Page Numbers: pp.1249-1253
  • Keywords: Product taxonomy, segmentation, clustering, supermarket, RFM, KDD, MANAGEMENT, TAXONOMY, TOOLS
  • Middle East Technical University Affiliated: Yes


This paper presents a novel methodology for product segmentation using customers' transactions on products. The proposed methodology introduces FMC model, and utilizes this model's features and clustering algorithms to group products into segments. The applicability of the proposed approach has been demonstrated on data collected by a supermarket chain. The results show that the pro-posed methodology provides an efficient tool that can be used to identify different product segments and to gain valuable insights about these distinct groups. The resulting product segments can help managers in the inventory management and developing marketing strategies.