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    ARTICLE

    An Adaptive Parameter-Free Optimal Number of Market Segments Estimation Algorithm Based on a New Internal Validity Index

    Jianfang Qi1, Yue Li1,3, Haibin Jin1, Jianying Feng1, Dong Tian1, Weisong Mu1,2,*

    CMES-Computer Modeling in Engineering & Sciences, Vol.137, No.1, pp. 197-232, 2023, DOI:10.32604/cmes.2023.026113 - 23 April 2023

    Abstract An appropriate optimal number of market segments (ONS) estimation is essential for an enterprise to achieve successful market segmentation, but at present, there is a serious lack of attention to this issue in market segmentation. In our study, an independent adaptive ONS estimation method BWCON-NSDK-means++ is proposed by integrating a new internal validity index (IVI) Between-Within-Connectivity (BWCON) and a new stable clustering algorithm Natural-SDK-means++ (NSDK-means++) in a novel way. First, to complete the evaluation dimensions of the existing IVIs, we designed a connectivity formula based on the neighbor relationship and proposed the BWCON by integrating… More >

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