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Utilizing data mining application techniques to involve a business analytics for retail outlets

Author: 
Pappu Rajan, A. and Victor, S. P.
Subject Area: 
Physical Sciences and Engineering
Abstract: 

This is a study on application of Retail Analytics regarding to the retail outlet in Tiruchirappallai, Tamil Nadu , South India using data mining technique. The scope of this paper is using mining technique to identify the products or products of particular category which has association that is products which are likely to buy with other products as a bundle of item sets. This is defined by association rules with the help of support and confidence metrics, thereby finding the frequent market basket bundle item sets. This is done using the point of sales data that is collected in a retail shop and is more of daily transaction data. Using the association rules and market basket analysis, profitable associated product item sets are found. This is also identifies customer’s pattern of buying behavior and it is then used to devise cross selling strategies to improve the sales of the products. Cluster analysis is used to define the relationship between products and identify the factors that influence the buying behavior of the customers. And the results derived is used to draw a visual merchandising technique that will satisfy the customers in terms of service and induce the impulse purchase of products, increasing the profit of the retail outlet and retaining its customers.

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