Predictive

Analytics
CIA III

Submitted By:
Srihari
1527031
Abhishek 1527103
Harsha
1527115
Manish
1527119
Akriti
Pranati
Rashmi

4. How could a website like Bigbasket.com which is into online grocery

delivery, enhance its business by using techniques of association in
data mining? Generate sample data for this scenario. Explain the
concepts of support, confidence and lift ratio. Explain the steps of
Apriori algorithm in generating strong rules.
Answer:
Bigbasket.com which is into online grocery delivery can enhance its
business by using the association techniques of data mining in following
ways:
1. Helps in customer profiling i.e. data mining helps determining what
kind of products are bought by what kind of people.
2. Helps in identifying the requirements of customers by using the
technique of predictive analytics to find the factors that attract new
customers in the market.
3. Helps to find the clusters of the model customers who do share
similar characteristics such as the spending habits, income,
individual interests, etc,.
4. Data mining helps in identifying the customer purchasing pattern
and based on this the management can take decisions on discounts.
The sample data set which shows the behaviour of the customers
buying from bigbasket.com is attached below:

PA bigbasket.com
sample data.xlsx

` Market Business Analysis (MBA) is a modelling technique which is

based on a theory that states if a individual buys certain set of group
items then he is more (or less) likely to buy another set of group items.
For instance If a person buys bread from bigbasket.com there is more
likely that he would also buy jam along with the bread.

Concepts of Support, Confidence and Lift Ratio:

Support(s):
Support is an indication of how frequently the item-set appears in the
database. An item set is a collection of one or more items
Example: Consider following sample market basket transactions
TID
1
2
3
4
5

Items
Bread, Milk
Bread, Diaper, Jam, Eggs
Milk, Diaper, Jam, Coke
Bread, Milk, Diaper, Jam
Bread, Milk, Diaper, Coke

Support count ()
Frequency of occurrence of an itemset
E.g. ({Milk, Bread,Diaper}) = 2
Support: s= ({Milk, Bread, Diaper})/Total = 2/5
Confidence(c):
Confidence is an indication of how often the rule has been found to be
true. Itmeasures how often items in Y appear in transactions that contain
X.
c= ({Milk, Bread, Diaper})/({Milk, Diaper}) = 2/3