Informatics Publishing Limited

Arti Arya ¹, Pooja Agarwal ², Abhinav Dangeti ², Aarti Pajan ², S. Praveena ², Aishwarya ²

Affiliations
1 Department of MCA, PES School of Engineering, Bangalore, IN
2 Department of CSE, PES School of Engineering, Bangalore, IN

Abstract

Retaining customers in current era is of utmost importance and crucial for the success of any business enterprise. Identifying potential and loyal customers for any enterprise is of great importance. Customer loyalty is one of the major aspects of Customer Relationship Management (CRM). It is very important for an organization to identify its loyal customers, so that the organization can provide better and special services to these customers in order to enhance their business. In this paper, the construction of fuzzy decision tree has been refined by assigning the weights to each attribute, as all the attributes may not affect the customer loyalty equally.

This paper proposes an application, which makes use of fuzzy decision trees for classifying customers into various categories. Rather than identifying a customer crisply falling near to the end boundaries, soft boundaries (concept of fuzziness) are used which classifies the customer into different predefined classes of loyalty from the information stored about the customers by the organization.

This procedure helps in classifying customers in a better way as compared to crisp classification. The proposed framework is evaluated on a sample dataset that provides encouraging results.

Keywords

Fuzzy Classification, Gaussian Membership Function, Customer Loyalty, Gini Index.

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Aishwarya ¹, Sanjay K. Mohanty ²

Affiliations
1 International Institute for Population Sciences, Govandi Station Road, Deonar, Mumbai 400088, IN
2 Department of Fertility Studies, International Institute for Population Sciences, Govandi Station Road, Deonar, Mumbai 400088, IN

Abstract

This paper examines the pattern of Monthly Per Capita Consumption Expenditure (MPCE) by socio-economic and demographic characteristics of households using unit data from 64th Round of National Sample Survey, India, 2007-2008. Household consumption expenditure is analysed with respect to food, non-food items, health and education. The results indicate that the share of health expenditure in India constitutes over five per cent of total consumption expenditure and it increases with age, economic status and educational level of the head of household. Medicine is the largest share of the total Out of Pocket (OoP) health expenditure. Around two-thirds of the households incurred catastrophic health expenditure. State differentials in OoP expenditure on health are large, possibly linking household expenditure to per capita income and share of public spending on health.

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