The Application of Data Mining Techniques to Create Promotion Strategy for Mobile Phone Shop

Abstract

The number of mobile shop is growing very fast in various regions in Indonesia including in Yogyakarta due to the increasing demand of mobile phone. This fact leads high competition among the mobile phone shops. In these conditions the mobile phone shop should have a good promotion strategy in order to survive in competition, especially for a small mobile phone shop. To create attractive promotion strategy, the companies/shops should know their customer segmentation and the buying pattern of their target market. These kind of analysis can be done using Data mining technique. This study aims to segment customer using Agglomerative Hierarchical Clustering and know customer buying pattern using Association Rule Mining. This result conducted in a mobile shop in Sleman Yogyakarta. The clustering result shows that the biggest customer segment of the shop was male university student who come on weekend and from association rule mining, it can be concluded that tempered glass and smart phone "x" as well as action camera and waterproof monopod and power bank have strong relationship. This results that used to create promotion strategies which are presented in the end of the study.