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DOI: 10.4018/978-1-4666-9888-8.ch013
Chapter 13
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Customer Behavior
Prediction using K-Means
Clustering Algorithm
ABSTRACT
Due to the increased availability of individual customer data, it is possible to
predict customer buying pattern. Customers can be segmented using clustering
algorithms based on various parameters such as Frequency, Recency and Monetary
values (RFM). The data can further be analyzed to infer rules among two or more
purchases of the customer. In this chapter we will present a clustering algorithm,
enhanced k- means algorithm, which is based on k- means algorithm to divide cus-
tomers into various segments. After segmentation, each segment is mined with the
help of a priori algorithm to infer rules so that the customer’s purchase behavior
can be predicted. From large number of association rules with sufcient coverage,
the customer’s purchasing pattern can be predicted. Experiment on real database
is implemented to evaluate the performance on efectiveness and utility of the ap-
proach. The results show that the proposed approach can gain a well insight into
customers’ segmentation and thus their behavior can be predicted.
Juhi Singh
Banasthali Vidyapith, India
Mandeep Mittal
Amity School of Engineering and Technology, India
Sarla Pareek
Banasthali Vidyapith, India