Model of Market Segmentation Based on Consumer Behavior:The Mobile Communication Industry Perspective

The article analyzes the existing methods of market segmentation in the mobile communication industry based on demography and ARPU value,and then presents a proposed model of market segmentation based on the consumer behaviors.The proposed model facilitates the identification of customers based on three dimensions,"customer current value","customer expansibility" and "customer loyalty",which can be measured with the variables from the database.Furthermore,the article exploits the K-means clustering and data mining methods to verify the model and confirm the practical value of the model.