Outlier detection in location based systems by using fuzzy clustering

Abstract

Customer segmentation has been one of most important decision in marketing. In general, demographics of customers, monetary value of customer transactions, types of product/service customers use are the sources of segmentation process. In recent years, new technology enabled new sources of data. On of these new data are the customer location data collected from location based systems (LBS). By using these location data an improved customer insight can be provided to the companies. Segmentation is an important tool for creating customer insight but anomalies in LBS data can prevent a well formed segmentation. In this paper we propose a novel approach to outlier detection in LBS data by using fuzzy c-means algorithm.