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Self-Organizing Map Applied in Car Sales
Self-Organizing Map Applied in Car Sales
iWeaver AI summarizes the content of arXiv:2408.05110 [pdf, other] to help you improve your efficiency 100 times
Joseph Moore
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August 23, 2024

ℹ️ Introduction

iWeaver AI summarizes the content of arXiv:2408.05110 [pdf, other] to help you improve your efficiency 100 times

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Title

  • Application of Unsupervised Artificial Neural Network Self-Organizing Map (SOM) in Identifying Main Car Sales Factors

Author

  • Mazyar Taghavia from Payame Noor University, Tehran, Iran

Abstract

  • The study applies an unsupervised ANN method, SOM, to determine the main factors influencing car sales in Iran, using data from questionnaires and fuzzy logic to adjust the study for realism.

Introduction

  • The car industry is a promising market, and understanding the factors that drive sales is crucial for companies to focus on improving their capabilities.

Literature Review

  • Artificial Intelligence (AI)
    • Definition: A branch of computer science focused on creating intelligent computer systems that exhibit human-like intelligence.
    • Components: Includes expert systems, neural networks, fuzzy logic, and genetic algorithms, which are used to model and execute intelligent theories.
  • Artificial Neural Networks (ANN)
    • Inspiration: Simplified models of the human neural system, inspired by the brain's calculation methods.
    • Capabilities: Known for parallel processing, mapping, generality, robustness, fault tolerance, and rapid processing.
    • Applications: Successfully applied in fields such as recognition, image processing, data comparison, prediction, and optimization.
    • Learning Mechanisms: Distinguished between supervised learning, where a learner guides the training process, and unsupervised learning, where the network organizes input data without external guidance.
  • Self-Organizing Map (SOM)
    • Inventor: Finnish Professor Teuvo Kohonen in the 1980s.
    • Function: Visualizes natural groupings and relationships in data, applied in various research areas including speech recognition and financial analysis.
    • Structure: A single-layer neural network with neurons arranged in an n-dimensional grid, typically a 2D rectangular grid.
    • Training: Does not require a target output; instead, it optimizes the node weights to match the input vector, using a process that includes distance evaluation, winner neuron selection, and weight vector adjustment.
  • Fuzzy Logic and Fuzzy Numbers
    • Origin: Introduced by Lotfi Askarzadeh (Zadeh) in 1965.
    • Concept: Allows for flexible membership functions in sets, as opposed to traditional "crisp" sets where membership is binary.
    • Fuzzy Numbers: Represent a range of possible values with varying degrees of membership, extending the concept of a single real number.
    • Examples: Triangular and trapezoidal fuzzy numbers are defined with specific membership functions that allocate values to represent the range of possible values.
  • Fuzzy Delphi Method
    • Origin: Developed from studies by the RAND Corporation in the 1950s.
    • Purpose: To achieve consensus among a group of experts through a systematic and iterative process.
    • Application: Used in this study to identify critical variables for the car sales factors analysis, integrating traditional Delphi methodology with fuzzy theory to improve consensus quality and manage vagueness.

Empirical Study

  • The research aimed to identify factors that motivate customers to buy Iranian-made cars.
  • A three-stage methodology was used: model development, SOM network development, and output analysis.
  • The fuzzy Delphi method was employed to identify effective factors from expert opinions.
  • A dataset from 98 usable questionnaires was used to train a 10x10 SOM.

Results

  • The SOM analysis revealed that price, quality, leasing accessibility, and foreign parts are the most influential factors in car sales.
  • The results provided a different perspective from the marketing expert rankings, indicating the effectiveness of SOM for analyzing large datasets.

Conclusions

  • SOM is a powerful data visualization technique for identifying patterns in large datasets, which can assist car manufacturers in focusing on key sales factors.

References

  • The paper cites various sources on AI, ANN, SOM, fuzzy logic, and their applications in data analysis and decision-making.

The study presents a novel approach to understanding consumer behavior in the car industry by leveraging SOM and fuzzy logic, offering insights that can potentially enhance sales strategies.

❓Q&A

You can ask iWeaver questions about the summary content

For example:

A. What other fields can SOM be applied to?

-- Data Mining - Analyze large datasets to discover patterns and relationships

-- Market Research- Identify consumer behavior patterns and market segments

-- Finance- Analyze financial data for trends, risk assessment, and fraud detection

-- Biology and Genetics- Study genetic data to understand gene expression patterns

B. How to use SOM in Environmental Science?

  1. Define the Research Objective:
    • Determine what specific aspect of environmental science you want to study, such as climate patterns, biodiversity, pollution levels, or habitat distribution.
  2. Data Collection:
    • Gather relevant environmental data, which could include temperature readings, precipitation levels, species population data, pollution indices, satellite imagery, and more.
  3. Data Preprocessing:
    • Clean the data to handle missing values, remove outliers, and standardize or normalize the data to ensure consistency across different variables.

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