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12 views

Case

Uploaded by

Singh Grewal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Case Study: Market Basket Analysis for Consumer Electronics

Background

An electronics retailer is aiming to enhance their marketing strategies and optimize inventory
by understanding the purchasing patterns of their customers. They have collected transaction
data over several months, recording various electronics items bought by customers in a single
visit. The retailer is particularly interested in discovering items frequently bought together
with televisions to boost cross-selling and up-selling opportunities.

Objective

The objective of this case study is to perform market basket analysis to find strong
association rules where "Television" is the right-hand side (RHS) item. This will help the
retailer identify which items are frequently bought together with televisions and develop
targeted marketing strategies.

Dataset

The dataset contains 1983 transactions with the following 20 items:

 Smartphone
 Laptop
 Tablet
 Smartwatch
 Headphones
 Bluetooth Speaker
 Camera
 Television
 Gaming Console
 Printer
 Router
 Smart Home Hub
 Monitor
 External Hard Drive
 USB Flash Drive
 Keyboard
 Mouse
 Webcam
 Smart Light Bulb
 Smart Thermostat

Each transaction records whether an item was purchased (Yes) or not (No).

Questions

1. Generate Association Rules:


o Using the Apriori algorithm in R, generate association rules with "Television"
as the RHS item. Provide the top 5 association rules based on confidence. For
each rule, list the support, confidence, and lift values.

1
2. Managerial Recommendations:
o Based on the top 5 association rules identified in the previous question,
suggest at least two managerial recommendations the retailer could implement
to increase sales. Justify your recommendations with reference to the rules and
any other relevant insights.

Instructions

1. Data Loading and Preparation:


o Load the provided dataset into R. The dataset is available in CSV format
Download the ‘electronics_data.csv’
2. Perform Association Rule Mining:
o Apply the Apriori algorithm to generate frequent itemsets.
o Generate association rules with "Television" as the RHS item.
o Identify and list the top 5 or more association rules based on confidence.
3. Analysis and Recommendations:
o Analyze the top 5 or more association rules to identify items frequently bought
together with televisions.
o Provide managerial recommendations based on the identified associations.
4. Deliverables:
o Write a report in a .doc format detailing the steps taken to generate the
association rules, the results, and the managerial recommendations.
o Save the R script used for the analysis.
o Upload both the .doc report and the R script to the LMS.
5. Deadline:
o The completed activity must be uploaded to the LMS before 11:00 AM on
15th July 2024.

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