A novel model for finding critical products with transaction logs

Abstract

For the consumer market, finding valuable customers is the first priority and is assumed to assist companies in obtaining more profit. If we could discover critical products that are related with valuable customers, then it will lead to better marketing strategy to fulfill those essential customers. It will also assist companies in business development. This study selects real retail transaction data via the recency, frequency, and monetary (RFM) analysis and adopts the K-means algorithm to obtain results. Moreover, the Apriori algorithm with minimum support and skewness criteria is used to filter and find critical products. In this research, we found a novel methodology through setting the minimum support and skewness criteria and utilized the Apriori algorithm to identify 31 single critical products and 60 critical combinations (two products). This study assist companies in finding critical products and important customers, which is expected to provide an appropriate customer marketing strategy.