Searching customer patterns of mobile service using clustering and quantitative association rule

Abstract

This study presents the patterns of use for additional services that are currently provided to mobile telecommunication subscribers in Korea. Factor analysis, clustering and quantitative association rules are used to find the service adoption patterns of segmented groups. From the analysis, three types of user groups are identified. The first group consists of a new generation of customers who utilize chargeable additional services using the 'direct button', for leisure and entertainment. The younger generation use their mobile phones more frequently than the older generation, and tend to display higher usage patterns for a variety of additional services. The second group utilizes practical additional services that are low-priced or free such as 'data service' and 'phone-to-phone service' via 'Caller ID request service'. The customers in the final group are people who have no general usage characteristics. This paper utilizes the association rules found in each cluster to provide strategic guidance to enhance mobile service market of the corresponding group.