Customer Relationship Management Systems Handbook

122 Customer Relationship Management Systems Handbook

Supervised Induction

With supervised induction, classification models are created from a set of

records, which is referred to as the “training set.” This method makes it possible

to infer conclusions from one set of descriptors of the training set to the

general. In other words, a rule might be produced which states that a customer

who is male, lives in a certain zip code area, earns $25,000 to $30,000 per

year, and is between 40 and 45 years of age, listens to the radio more than

he watches TV. Therefore, he might be a possible buyer for a new camcorder.

The advantage of this technique is that the patterns are based on local

phenomena, whereas statistical measures check for conditions that are valid ...