Course : Business Analytics

1.Supermart, a supermarket in Indonesia, is facing financial difficulties during the coronavirus pandemic. The management hired you as a consultant to increase retail sales and revenue through a marketing strategy called cross-selling. Cross selling encourages customers to purchase other products that complement or supplement the main product in a transaction. For instance, a cashier is scanning products purchased by a customer. If the customer only purchases white bread, the cashier may offer margarine to complement the white bread.

a.In order to conduct the analysis, what dataset and attributes/information do you need to obtain from the management?

b.To conduct the analysis, you need to use the association rule mining. Give the definition of the association rule mining!

There are three association rule mining algorithms that you may use: Apriori, Eclat, FP-Growth. Which algorithm that performs better out of these three?

c.During the analysis using the above algorithm, there are two parameters that you need to set: minimum support value and minimum confidence value. Please give the definition of support and confidence! How do you determine the minimum support value and the minimum confidence value?

You have successfully conducted the analysis and obtained 3 pairs of main products and complementary products below:

Main Product Complementary Support Confidence Product 1 White Bread, Condensed Margarine 10% 75% Milk 2 Red Onion White Onion 20% 70% 3 Instant Noodle Egg 15% 70%