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Method for customer segmentation with applications to electronic commerce

  • US 6,862,574 B1
  • Filed: 07/27/2000
  • Issued: 03/01/2005
  • Est. Priority Date: 07/27/2000
  • Status: Expired due to Term
First Claim
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1. A method of describing customer data stored in a database and predicting missing customer data for segmentation of the customer data, comprising:

  • a) determining customer profiles by a computer;

    b) applying a Gaussian mixture model algorithm to the customer data stored an the database to assess a similarity of the customer profiles to existing customer profiles by the computer; and

    c) predicting the missing customer data by the computer using the Gaussian mixture model algorithm, including the steps of c-1) randomly initializing Gaussian mixture model parameters by the computer;

    c-2) applying an expectation formula, maximization formulae, and radial basis function formulae, to the customer data to obtain a solution for the messing data by the computer; and

    c-3) repeating step (c-2) until the solution for the missing customer data converges on a preferred solution by the computer.

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