Market basket analysis of beauty products
|Supervisor Name||Bruno Jacobs|
|University||Erasmus University Rotterdam|
|Keywords||data mining, market basket analysis, association rules, multinomial logit|
Companies nowadays are rich in vast amounts of data but poor in information extracted from that data. Big data is seen as a valuable resource and although the concept of data mining is still new and developing, companies in a variety of industries are relying on it for making strategic decisions. Facts that otherwise may go unnoticed can be now revealed by the techniques that sift through stored information. Market basket analysis is a very useful technique for finding out co-occurring items in consumer shopping baskets. Such information can be used as a basis for decisions about marketing activity such as promotional support, inventory control and cross-sale campaigns. The main objective of the thesis is to see how different products in a beauty shop assortment interrelate and how to exploit these relations by marketing activities. Mining association rules from transactional data will provide us with valuable information about co-occurrences and co-purchases of products. Such information can be used as a basis for decisions about marketing activity such as promotional support, inventory control and cross-sale campaigns.