Unsupervised Machine Learning for Benefit Based Market Segmentation: Insights into Small Business Consumers’ Online Engagement

Unsupervised Machine Learning for Benefit Based Market Segmentation: Insights into Small Business Consumers’ Online Engagement

Mathematics

2025

Daniel Lang

Unsupervised machine learning clustering algorithms can be used in a variety of different ways to segment a market. This study uses such algorithms to perform benefit based market segmentation, grouping consumers of small businesses in the United States (US) into 3 segments based on how much they value various factors characterising a small business and its online presence. A recent method was used to decide how to apply clustering algorithms to our dataset. For a given algorithm, this method chooses the number of clusters to ensure that the clustering created is stable; however running the algorithm on individual clusters created by the first run of the algorithm produces unstable clusters.

Clustering, Unsupervised Machine Learning, Machine Learning, Algorithm, Market Segmentation, Small Business