A Hybrid Methodology Integrated of Gray Relational Analysis and Case-Based Reasoning for Customer Segment

In this study, we propose a hybrid method based on case-based reasoning and gray relational analysis. In this method, the index weight will be elicited by hierarchy analytic process, thus improving retrieval accuracy of case-based reasoning. Then, the function of the similarity integrated of gray relational analysis is defined to ensure the customers in the same cluster have the closest purchasing patterns. This hybrid method allows groups of customers with similar transaction behaviors, providing a more homogeneous response to marketing strategy. Using a data set, a case study is conducted to evaluate the quality and validity of the proposed approach.