http://www.iaeme.com/IJM/index.asp 784 editor@iaeme.com
International Journal of Management (IJM)
Volume 11, Issue 8, August 2020, pp. 784-790, Article ID: IJM_11_08_070
Available online at http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=8
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: 10.34218/IJM.11.8.2020.070
© IAEME Publication Scopus Indexed
OPTIMIZING SHOPPING MALL DORMANT VIP
CUSTOMER PROMOTION DECISIONS WITH
BACK PROPAGATION NEURAL NETWORKS
PREDICTION MODEL
Kuo-Yan Wang and Jing Yu
School of Economics and Management, Guangdong University of Petrochemical
Technology, Maoming, Guangdong, China
ABSTRACT
To avoid the inaccuracy and cognitive bias of the existing customer retention
predictive model, a robust database with sufficient mining techniques have attracted
great attention in the field of consumer research, especially in the optimization of
retailing business decisions. However, choosing optimum promotion decisions that
maximize the retailer profit while minimizing advertising costs are still a challenging
task. By minimizing mall costs and maximizing the revisit intention of the target
dormant VIP customer, this study utilizes an intelligent and convenience model based
on back propagation neural networks to organize a large-scale shopping mall
objective when constructing the publicity solution. When compared to the previous
non-differentiation strategy, the proposed back propagation neural networks
prediction model helped the mall reduce overall advertising costs by 66.2% while
precisely measuring and awakening the dormant VIPs with 90%.
Key words: Back propagation neural networks, dormant customer, predictive model,
promotion expense
Cite this Article: Kuo-Yan Wang and Jing Yu, Optimizing Shopping Mall Dormant
VIP Customer Promotion Decisions with Back Propagation Neural Networks
Prediction Model, International Journal of Management, 11(8), 2020, pp. 784-790.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=8
1. INTRODUCTION
Globalization and highly homogenized industry development have made the retailing business
fiercely competitive. Finding excellent customers, which means those who visit and purchase
frequently, is of vital importance for improving sales and the efficiency of various measures
taken to target customers [1]. Keeping these premium patrons, however, is more significant
for the goodwill maintenance of a firm. VIP customers, in particular, are an interesting market
segment because they have relatively different behaviors compared to the regular segments of