Implementation study: Using decision tree induction to discover profitable locations to sell pet insurance for a startup company

Abstract

We demonstrate the use of decision tree induction, employing both C4.5 and Profit Optimal (SBP) algorithms, to discover profitable locations for a young startup firm to sell their product, pet insurance. We use publicly available data including US Census data and veterinary surgery location data as our data sources and use the potential profits generated by each of the algorithms as key performance metrics. We show how our findings link to general business behaviour and performance, by describing the implications of our findings for marketing strategy at the pet insurance company.Journal of Database Marketing & Customer Strategy Management (2007) 14, 281–288. doi:10.1057/palgrave.dbm.3250059 [ABSTRACT FROM AUTHOR]