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Building a Data Mining Framework for Target Marketing

March, Nicolas (2011) Building a Data Mining Framework for Target Marketing. Doctoral thesis, WU Vienna University of Economics and Business.

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Abstract

Most retailers and scientists agree that supporting the buying decisions of individual customers or groups of customers with specific product recommendations holds great promise. Target-oriented promotional campaigns are more profitable in comparison to uniform methods of sale promotion such as discount pricing campaigns. This seems to be particulary true if the promoted products are well matched to the preferences of the customers or customer groups. But how can retailers identify customer groups and determine which products to offer them? To answer this question, this dissertation describes an algorithmic procedure which identifies customer groups with similar preferences for specific product combinations in recorded transaction data. In addition, for each customer group it recommends products which promise higher sales through cross-selling if appropriate promotion techniques are applied. To illustrate the application of this algorithmic approach, an analysis is performed on the transaction database of a supermarket. The identified customer groups are used for a simulation. The results show that appropriate promotional campaigns which implement this algorithmic approach can achieve an increase in profit from 15% to as much as 191% in contrast to uniform discounts on the purchase price of bestsellers. (author's abstract)

Item Type: Thesis (Doctoral)
Keywords: market basket analysis / cross-selling / customer relationship management / binary supermarket data / customer cluster analysis
Classification Codes: RVK QH 234, QQ 440
Divisions: Departments > Marketing > Marketing-Management > Handel und Marketing
Depositing User: Nicolas Tobias March
Date Deposited: 15 Nov 2011 14:28
Last Modified: 15 Jun 2015 15:36
URI: http://epub.wu.ac.at/id/eprint/3242

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