MGCR 331 Lecture Notes - Lecture 2: Affinity Analysis, Data Warehouse, Social Security Number
Document Summary
Data mining the process of extracting patterns from data. Allows businesses to discover previously unknown patterns or trends and make predictions of future events. Previously too costly to store and process transaction data is now useful for management decision making: ex. Large retailer with thousands of products and hundreds of branches. Sales are tracked by the time of day and linked to spending by individual customers: example of analysis: spot that some regions have not accepted new products as fast as others. Direct marketing identify who should be included in mailing list. Market segmentation identify common characteristics of customers who buy same products customer churn: predict which customers are likely to leave company for another. Market basket analysis identify what products are likely to be bought together insurance claims analysis: discover patterns of fraudulent transactions, compare current transactions against those patterns.
