Collect Data Of Customers example essay topic

1. Introduction ABC Company operates telecommunications business. Management prepares to launch a new service to the market. The researchers use data mining techniques to obtain information of market profile. This paper describes how Market Basket Analysis (MBA), Memory Based Reasoning (MBR) and Neural Networks (NN) analyze the data. The data analysis methods generate valuable information for ABC Company constructing the marketing campaign.

Management evaluates the business problems, and converts into the data mining problems. Then they select the right data set and inputs into the data mining models. They collect information from data mining and use it to take actions. These actions bring values to the company.

Management measures the results as a feedback to the other research projects. 2. Business Problems Telecommunications is a heavy competitive market. All telecommunications companies offer similar products and services. ABC Company plans to launch a new service - wireless broadband Internet access. The customers access Internet using GPRS (General Packet Radio Services) through their mobile phones.

Although ABC Company captures about 40% of total market share, she understands that only delivery innovative service maintains sustainable competitive advantages. The competitors such as Sunday, Smart Tone also plan to delivery some new services using broadband wireless communication. ABC Company performs data analysis to capture information of customers' attitudes and market situations. Obviously, a new product delivery is a marketing problem. It is suitable to transform into data analysis problem. Management uses techniques to capture the data.

Management has a better understanding to existing market. 3. Question 1 - Data Analysis by Market Basket Analysis 3.1. Research Objectives By using MBA, ABC Company selects data from customer database.

MBA is developed from the retail business. Researchers collect data of customers to see the joint consumed products. MBA uses information about what customer purchase. MBA gives insights into the merchandise by telling the researcher which products tend to be purchased together and which are most are enable to promotion.

MBA provides the information that which product customers like to buy. ABC Company plans to launch a marketing campaign to promote the new services. It requires gathering information of market profile, customer preferences and their buying habits. The business problem will be converted into data analysis problem. The objectives of the data analysis are, o To find out the cluster of customer make heavy response of the new services. o To find out which attributes affect the customers to buy the new services. o To allocate the marketing resources to suit the target customers.

ABC Company has a large internal database to store the customer information. It records the purchase history of the customers. The customer services department collects the information about customer preference, the favorite attributes to the products. Designers collect data and input to the data mining models. Actually, there are six functions of data mining; these functions transform data into valuable information.

They are, Classification Assign records to one of a predefined set of classes. Estimation Determine values for an unknown continuous variable. Prediction Classify records according to some predicted future behavior or estimated future value. Affinity Grouping Determine which things go together, as in a shopping basket. Clustering Segment a heterogeneous population of records into a number of more homogeneous subgroups. Description Describe a complex database to increase understanding of the underlying data.

Data mining is to capture information through data mining; there are two type of knowledge discovery system - undirected and directed knowledge discovery. Undirected knowledge discovery provides information of market segmentation. It finds target customers' attitude to the new service. ABC Company captures the characteristics of target customers, which are their consumption behavior.

Market basket analysis produces a fast measurement on the target market. By using undirected knowledge discovery, ABC Company finds out the variables which affect the consumption. And ABC Company will use directed knowledge discovery to figure out how these variables affect each other. And the researchers use the hypothesis testing proves the finding. Finally, the researchers deliver suggestions for management to make business decision. 3.2. The description of data set The data used for MBA is typically the detailed transaction data captured in monthly statements, point of sales.

Data connection is the critical part of MBA; researchers evaluate the validity of data. ABC Company collects the customer information; the records are stored in a relational database system. The data format is listed in following table, Table 1 Field Name Field Content Customer Name: Johnny Chan Gender: Male Age: 29 Phone Number: 234-2345-2345 Email: Address: ... Educational Level: Higher Education Personal Income: HK$ xx Purchasing History: 2001, February, monthly subscription: HK$ x. .. : ...

The researchers create a data set from the customer information database system. They are valuable input into the data analysis. Researchers easily extract information from the system. The researchers first determine which products that customer most desire, they are listed as following, o Customers use Internet access Customers use email to transfer the message Customers use call forwarding o Customers use WAP phone to browse the Internet Customers are the heavily users.