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Automated Market Basket Analysis System

Automated Market Basket Analysis System

Project / Seminar Material
Reference ID: PS-5446-TM

DEDICATION

This research material titled “Automated Market Basket Analysis System” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Computer Science (CS), Book Authors and Profound Scholars of existing or related project material on “Automated Market Basket Analysis System” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.


Automated Market Basket Analysis System

TABLE OF CONTENTS

PRELIMINARY PAGES


CHAPTER ONE

INTRODUCTION

  • 1.1 Introduction
  • 1.2 Background of Study
  • 1.3 Statement of the Problem
  • 1.4 Aim and Objectives of Study
  • 1.5 Significance of Study
  • 1.6 Scope of Study
  • 1.7 Limitations of the study
  • 1.8 Definition of Terms

CHAPTER TWO

LITERATURE REVIEW

  • 2.1 Introduction
  • 2.2 Definition of Market Basket Analysis Information System
  • 2.3 The Strategic Role of the Market Basket Analysis Information Systems
  • 2.4 The Role of the Internet
  • 2.5 Benefits of the Market Basket Analysis Information System
  • 2.6 Market Basket Analysis Information System Functional Components
  • 2.7 Marketing Decision Support System
  • 2.8 Customer Management Systems
  • 2.8.1 Customer Relationship Management
  • 2.8.2 Customer Relationship Management Functions
  • 2.9 Privacy and the Market Basket Analysis Information System
  • 2.10 Theoretical Framework
  • 2.10.1 Market Basket Analysis Information Systems
  • 2.10.2 Web Based Market Basket Analysis Information Systems
  • 2.10.3 Marketing Management
  • 2.10.3.1 Marketing Mix
  • 2.11 Empirical Studies

CHAPTER THREE

SYSTEM ANALYSIS AND DESIGN

  • 3.1 Methodology Adopted
  • 3.1.1 Problem Identification Using SSADM
  • 3.2 Analysis of the Existing System
  • 3.2.1 Dataflow of the Existing System
  • 3.2.2 Disadvantages Of The Existing System
  • 3.2.3 Weakness of the existing System
  • 3.3 Analysis of the Proposed System
  • 3.3.1 Data Flow Diagram of the Proposed System
  • 3.3.2 Advantages of the Proposed System
  • 3.3.3 Justification of the Proposed System
  • 3.4 Functional Requirements
  • 3.4.1 Use Case Diagram Of The Admin / User Privileges
  • 3.5 Data Requirements
  • 3.6 High Level Model of the Proposed System

CHAPTER FOUR

SYSTEM DESIGN AND IMPLEMENTATION

  • 4.1 Objectives of the Design
  • 4.2 Cohesion and Decomposition High level Model
  • 4.3 Control Center / Overall Dataflow Diagram
  • 4.3.1 Proposed System Operation Flowchart
  • 4.4 System Specification and Design
  • 4.4.1 Input and Output Specification
  • 4.4.2 Database Specification and Design
  • 4.4.3 Data Dictionary
  • 4.5 Choice and Justification of Programming Language
  • 4.6 Program Documentation
  • 4.7 Implementation Techniques
  • 4.8 Programming Module Specification
  • 4.8.1 Installation
  • 4.9 Computer Hardware Minimum Requirement
  • 4.10 Software Requirement
  • 4.11 Personnel / User Training

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

  • 5.1 Introduction
  • 5.2 Summary
  • 5.3 Conclusion
  • 5.4 Recommendation

REFERENCES

APPENDIX A - “SOURCE CODE”

APPENDIX B - “OBJECT PROGRAM”

ABSTRACT

Market Basket Analysis System results in a better understanding of the customers and their purchasing behavior, allowing retailers to explore associations, predict the likelihood of a customer response based on associations to maximize profit for the retailers by providing better services to the consumers and ultimately optimizing marketing and sales operations for results. The aim of the study is to Design and Implement an Automated Market Based Analysis System that offer better services to the consumers. In achieving this aim, the following specific objectives were laid out to design and develop an application software that will provide valuable information about co-occurrences and co-purchases of products, Implement a well market basket analysis tool to see how different products in a market shop assortment interrelate and how to exploit these relations by marketing activities and analyze customers buying habits by finding association between the different items each customer place in their "shopping Basket". The methodology adopted in this study is the structured system analysis and design methodology (SSADM) which is a technical approach for analyzing and designing an application or system by applying object throughout the software development process. The programming language used is HTML, CSS, JAVASCRIPT, PHP, SQL and JQUERY. The reason why web programming languages was used is because, it is platform independent and it is a web based application. The Automated Market Basket Analysis System would improve on search methodologies that can also be of help in generating recommendations for consumers though the association rule mining algorithm embedded in the system. The expected result is an electronic billing system that will process customer’s selected items in a shopping mall or supermarket, and the system will generates an accurate bill for payment purpose. The provided results reveal that the obtained solutions seem to be more realistic and applicable.


Automated Market Basket Analysis System

CHAPTER ONE

1.1 Introduction

Market Basket Analysis System is a widely used technique among the Marketers to identify the best possible combinatory of the products or services which are frequently bought by the customers. This is also called product association analysis. Association analysis is mostly done based on an algorithm named “Apriori Algorithm” (Kavita et al., 2017). The Outcome of this analysis is called association rules. Marketers use these rules to strategize their recommendations. Market Basket Analysis (MBA) was coined from a supermarket scene where a customer enters and picks a basket to start shopping. The goal of a Market Basket Analysis System is to predict the customers buying pattern and possibly the goods in the superstore within the categories that the customer will like to pick and useful information to support retail marketing decisions (Savi et al., 2014).

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Limitations of the Study and Definition of technical terms.


1.2 Background of Study

Marketing concentrates primarily on the buyers, or consumers. After determining the customers’ needs and desires, marketers develop strategies that are designed to educate customers about a product’s most important features, persuade them to buy it, and then to enhance their satisfaction with the purchase. Where marketing once stopped with the sale, today businesses believe that it is more profitable to sell to existing customers than to new ones. As a result, marketing now also involves finding ways to turn one-time purchasers into lifelong customers. Marketing includes planning, organizing, directing, and controlling the decision-making regarding product lines, pricing, promotion, and servicing. In most of these areas marketing has overall authority; in others, as in product-line development, its function is primarily advisory. In addition, the marketing department of a business firm is responsible for the physical distribution of the products, determining the channels of distribution that will be used, and supervising the profitable flow of goods from the factory or warehouse.

The challenges encountered that led to the execution of the research work is that, the inefficiency and lack of effectiveness in focus group and individual market research or survey methods by developing a windows based application that uses qualitative (also called subjective or judgmental) survey techniques to report consumers behavior or reaction towards particular product(s) and/or service(s) of company over a reasonable period of time.

There are two types of research: qualitative and quantitative. To gain a general impression of the market, consumers, or the product, companies generally start with qualitative research. This approach asks open-ended rather than yes or no questions in order to enable people to explain their thoughts, feelings, or beliefs in detail. One of the most common qualitative research techniques is the focus group in which a moderator leads a discussion among a small group of consumers who are typical of the target market. The discussion usually involves a particular product, service, or marketing situation. Focus groups can yield insights into consumer perceptions and attitudes, but the findings cannot be applied to the whole market, because the sample size is too small. Focus group results, then, are suggestive rather than definitive.

The insights generated by a focus group are often explored further through quantitative research, which provides reliable, hard statistics. This type of research uses closed-ended questions, enabling the researcher to determine the exact percentage of people who answered yes or no to a question or who selected answer a, b, c, or d on a questionnaire. One of the most common quantitative research techniques is the survey in which researchers sample the opinions of a large group of people. If the sample group is large enough and is representative of a particular group, such as executives who use cell phones, statisticians consider the findings statistically valid, which means that if all consumers in that particular category could be surveyed, the findings would still be the same. This means that quantitative findings are conclusive in a way that qualitative findings cannot be.


1.3 Statement of the Problem

Investigation reveals the problems of the existing Market Basket Analysis System which entails that, the existing system is inefficiency and lack of effectiveness in focus group and individual market research or survey methods by developing a windows based application that uses qualitative (also called subjective or judgmental) survey techniques to report consumers behavior or reaction towards particular product(s) and/or service(s) of company over a reasonable period of time.


1.4 Aim and Objectives of Study

The aim of the study is to Design and Implement an Automated Market Basket Analysis System that offer a better services to the consumers. In achieving this aim, the following specific objectives were laid out as follows to design and develop an application software that will:

  1. Implement a well market basket analysis tool to see how different products in a market shop assortment interrelate and how to exploit these relations by marketing activities
  2. Provide valuable information about co-occurrences and co-purchases of products.
  3. Analyze customers buying habits by finding association between the different items each customer place in their "shopping Basket".
  4. Increase the amount of data that is been generated every second and to allow experts to search for meaningful associations among customer purchases.
  5. Ensure maximum utilization of any available resources in a production process to meet-up with consumers’ needs and specifications.
  6. Eliminate the bottleneck at all stages of production and to solve problems related to market research deficiency.

1.5 Significance of Study

Due to the commonly identified problem and issues in market basket analysis system, this thesis will go a long way to bring to the knowledge of sellers mining purchasing patterns of customers, store settings and serve customers better. The proposed system will be able to products with affinity to be sold together, also, improve in-store settings and optimize product placement and control inventory based on product demand being able to find the probability of purchase for each product or a certain set of products. Finally, the expected contribution and knowledge of this research work will benefit the researcher, and the end users.


1.6 Scope of Study

The study focuses on the Design and Implementation of Automated Market Basket Analysis System. It will cover the analysis of a market place on its market basket analysis, the market data mining, identifying customer requirements and customer profile system mapping. This system is basically a market analytical software or market utility tools which shall revolve on the listed objectives and scope.


1.7 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

  1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
  2. Research material: availability of research material is a major setback to the scope of the study.
  3. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
  4. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet).

1.8 Definition of Terms

  1. Internet: The Internet is a global wide area network that connects computer systems across the world.
  2. Business: A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities.
  3. Virtual Store: The virtual store is an online store that displays merchandise and an order form.
  4. Marketing: Marketing is the process of teaching consumers why they should choose your product or service over those of your competitors, and is a form of persuasive communication.
  5. Promotion Channels: In marketing, promotion refers to any type of marketing communication used to inform or persuade target audiences of the relative merits of a product, service, brand or issue.

Customer Relation: Customer relations describe the ways that a company will engage with its customers to improve the customer experience.

CHAPTER TWO

2.0 Literature Review

2.1 Introduction

This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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