An artificial neural network is a form of computer program modeled on the brain and nervous system of humans.
[1] Neural networks are composed of a series of interconnected processing neurons that function in unison to achieve certain outcomes.
Due to their learning ability, flexibility, adaption, and knowledge discovery, neural networks offer many advantages over traditional models.
Classification of customers can be facilitated through the neural network approach allowing companies to make informed marketing decisions.
[5] Sales forecasting “is the process of estimating future events with the goal of providing benchmarks for monitoring actual performance and reducing uncertainty".
[6] Artificial intelligence techniques have emerged to facilitate the process of forecasting through increasing accuracy in the areas of demand for products, distribution, employee turnover, performance measurement, and inventory control.
[7] Neural networks provide a useful alternative to traditional statistical models due to their reliability, time-saving characteristics and ability to recognize patterns from incomplete or noisy data.
[9] AI is allowing organizations to “deliver an ad experience that is more personalized for each user, shapes the customer journey, influences purchasing decisions, and builds brand loyalty” (“How”).
“By analyzing customers based on their movement among segments over time, we can achieve dynamic micro-segmentation and predict future behavior in a very accurate fashion’” (Kushmaro).
Each expert system has the ability to process data, and then through reasoning, transform it into evaluations, judgments, and opinions, thus providing advises to specialized problems.
Recommendations are made by the system in regard to marketing mix instruments, such as lowering the price or starting a sales promotional campaign.
It assists in effectively allowing processes such as customer segmentation, campaign management, and product promotion, to be undertaken at a more efficient rate.
Prior to the purchase of the automated system, human employees would have to walk the enormous warehouse, tracking and retrieving books.
The Kiva robots are able to undertake order fulfillment, product replenishment, as well as heavy lifting, thus increasing efficiency for the company.
[20] Data mining involves searching the Web for existing information namely opinions and feelings that are posted online among social networks.
It analyzes peoples opinions, appraisals, attitudes, and emotions toward entities, individuals, issues, events, topics, and their attributes”.
Hyperlink based intelligence can be used to seek out web communities, which is described as ‘ a cluster of densely linked pages representing a group of people with a common interest’.
[21] One tool, Twizoo, uses AI to gather reviews from social networking sites about restaurants to help users find a place to eat.
Twizoo had much success from the feedback of its users and expanded by launching “a widget where travel and hospitality websites could instantly bring those social media reviews to their own audiences” (Twizzo, 2017).