Comparing performance of feedforward neural nets and K-meansfor cluster-based market segmentation

We compare the performance of a specifically designed feedforward artificial neural network with one layer ofhidden units to the K-means clustering technique in solving the problem of cluster-based market segmentation. Thedata set analyzed consists of usages of brands (product category: household cleaners) in different usage situations. Theproposed feedforward neural network model results in a two segment solution that is confirmed by appropriate tests.On the other hand, the K-means algorithm fails in discovering any somewhat stronger cluster structure.[...]