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Market Basket Analysis. By Sowjanya Alaparthi. Topics to be discussed. Introduction to Market basket analysis Apriori Algorithm Demo-1 ( Using self created table) Demo-2 ( Using Oracle sample schema) Demo-3 ( Using OLAP analytic workspace). Introduction to Market Basket Analysis.

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market basket analysis

Market Basket Analysis

By

Sowjanya Alaparthi

topics to be discussed
Topics to be discussed
  • Introduction to Market basket analysis
  • Apriori Algorithm
  • Demo-1 ( Using self created table)
  • Demo-2 ( Using Oracle sample schema)
  • Demo-3 ( Using OLAP analytic workspace)
introduction to market basket analysis
Introduction to Market Basket Analysis
  • Def: Market Basket Analysis (Association Analysis) is a mathematical modeling technique based upon the theory that if you buy a certain group of items, you are likely to buy another group of items.
  • It is used to analyze the customer purchasing behavior and helps in increasing the sales and maintain inventory by focusing on the point of sale transaction data.
  • Given a dataset, the Apriori Algorithm trains and identifies product baskets and product association rules
definitions and terminology
Definitions and Terminology
  • Transaction is a set of items (Itemset).
  • Confidence : It is the measure of uncertainty or trust worthiness associated with each discovered pattern.
  • Support : It is the measure of how often the collection of items in an association occur together as percentage of all transactions
  • Frequent itemset : If an itemset satisfies minimum support,then it is a frequent itemset.
  • Strong Association rules: Rules that satisfy both a minimum support threshold and a minimum confidence threshold
  • In Association rule mining, we first find all frequent itemsets and then generate strong association rules from the frequent itemsets
definitions and terminology continued
Definitions and Terminology- Continued
  • Apriori algorithm is the most established algorithm for finding frequent item sets mining.
  • The basic principle of Apriori is “Any subset of a frequent itemset must be frequent”.
  • We use these frequent itemsets to generate association rules.
apriori algorithm
Apriori Algorithm

Ck: Candidate itemset of size k

Lk: Frequent itemset of size k

L1={frequent items};

For (k=1; Lk!=0; k++) do begin

Ck+1= Candidates generated from Lk;

For each transaction t in the database do

Increment the count of all candidates in Ck+1 that are contained in t

Lk+1=candidates in Ck+1 with min_support

End

Return UkLk;

demo 1
Demo-1

Installations

Oracle 10g enterprise edition

SQL Plus

Oracle Data Miner Client

demo 1 data preparation
Demo 1 - Data Preparation
  • Download the sample data, which is in excel sheet.
  • write macro to convert data in excel sheet to insert queries
  • Create a table and execute these insert queries in SQLplus
  • As we are connected to Oracle server, this table is then found in Oracle database
demo 1 connections
Demo-1 Connections

Connect Oracle Data Miner Client to Oracle Database

  • Make sure the oracle listener is listening
  • Database instance ‘ora478’ is started.
  • The port used is 1521
  • Give the hostname as oracle.itk.ilstu.edu
demo 11
Demo-1
  • Perform the activity, after installations and connections are made.
demo 2 using oracle sample schema
Demo-2 ( using oracle sample schema)
  • Download Oracle 10g on your system and install it
  • Select the sample schema option during the custom installation
  • Launch Oracle Data Miner Client
  • In order to use this sample scheme for our activity, we should have the system administrator privileges.
  • The username is SH and password is password
demo 2
Demo -2
  • Administrator should perform some grants in sqlplusw to build this activity. They are

alter user sh account unlock;

alter user sh identified by password;

grant create table to sh;

grant create sequence to sh;

grant create session to sh;

grant create view to sh;

grant create procedure to sh;

grant create job to sh;

grant create type to sh;

grant create synonym to sh;

grant execute on ctxsys.ctx_ddl to sh;

demo 21
Demo-2

The points to be noted before starting the activity are:

  • Make sure the oracle listener is started
  • Database instance ‘ORCL’ is started.
  • The port used is 1521
  • Give the hostname as 127.0.0.1, which is a general hostname.
demo 22
Demo-2
  • Finally, the results from the model are published to a table, and this table forms the raw source for the new OLAP product dimension.
  • At this point there is no information relating to revenue, costs or quantity. So, we need to extend the activity beyond association analysis to OLAP.
slide16
OLAP
  • We have to correctly format the results obtained from Association analysis for dimension mapping in OLAP. This can be done using OLAP DML or PL/SQL.
  • In our activity we create a separate dimension that can hold the results from algorithm. For each dimension we can create Levels, hierarchies, attributes and mappings.
olap analytic workspace
OLAP- Analytic workspace
  • Launch Analytic workspace and give the login details as

Username- sh

Connection information- 127.0.0.1:1521:orcl

This connects to Oracle sample schema SH on 1521 port and local host 127.0.0.1 and orcl database instance.

demo 3 olap analytic workspace
Demo 3- OLAP Analytic Workspace
  • Perform the activity and show the mappings
conclusion
Conclusion
  • We have shown how Market basket analysis using association rules works in determining the customer buying patterns. This can be further extended using OLAP Analytic workspace as shown in demo-3, to add dimensions and cube to identify other measures like costs, revenue and quantity.
references
References

Books:

  • [1] Michael J. A. Berry, Gordon Linoff.”Data Mining Techniques: For Marketing, Sales, and Customer Support (Paperback)”.
  • [2] J.Han,M. Kamber(2001) “Data Mining”, Morgan Kaufmann publishers, San Francisco,CA

Links:

  • [3].http://oraclebi.blogspot.com/2007/02/using-market-basket-analysis-to-add.html
  • [4]. http://nymetro.chapter.informs.org/prac_cor_pubs/Ausleder-On-market-basket-analysis-May-04.pdf
  • [5].http://www2.sas.com/proceedings/sugi28/223-28.pdf
  • [6] http://en.wikipedia.org/wiki/Market_basket_analysis
  • [7] http://www.cs.ualberta.ca/~zaine/courses/cmput499/slides/lect10/sld053.htm
  • [8] http://www.icaen.uiowa.edu/~comp/Public/Apriori.pdf