Machine Learning-Based Customer Segmentation and Behavioral Analysis Using K-Means Clustering
Keywords:
market basket analysis, apriori algorithm, association rules, product recommendations, data miningAbstract
The rapid growth of transactional data in retail and e-commerce has created opportunities to understand customer purchasing behavior through Market Basket Analysis (MBA). This study applies the Apriori algorithm to identify product association patterns within transactional databases and evaluates the effectiveness of including product category parameters to enhance product package recommendations. A quantitative approach with an applied experimental method is used to systematically process and analyze transactional data. The study involves data preprocessing, application of the Apriori algorithm to generate frequent itemsets and association rules, and visualization of the results. Findings indicate that the algorithm successfully discovers frequently co-purchased product combinations, and the inclusion of product categories improves the relevance and quality of the resulting recommendations. This research provides practical benefits for businesses, such as guiding cross-selling strategies, optimizing inventory management, and enhancing customer satisfaction. Additionally, it contributes to the theoretical development of data mining applications in retail. The results suggest that leveraging association rules with enhanced parameters can support more effective marketing strategies and evidence-based decision-making in dynamic transactional environments.
References
M. Awais, “Optimizing dynamic pricing through AI-powered real-time analytics: the influence of customer behavior and market competition,” Qlantic J. Soc. Sci., vol. 5, no. 3, pp. 99–108, 2024.
R. Sharma, S. Srivastva, and S. Fatima, “E-commerce and digital transformation: Trends, challenges, and implications,” Int. J. Multidiscip. Res.(IJFMR), vol. 5, pp. 1–9, 2023.
O. V. Akinrinoye, O. T. Kufile, B. O. Otokiti, O. G. Ejike, S. A. Umezurike, and A. Y. Onifade, “Customer segmentation strategies in emerging markets: a review of tools, models, and applications,” Int. J. Sci. Res. Comput. Sci. Eng. Inf. Technol., vol. 6, no. 1, pp. 194–217, 2020.
O. H. Olayinka, “Data driven customer segmentation and personalization strategies in modern business intelligence frameworks,” World J. Adv. Res. Rev., vol. 12, no. 3, pp. 711–726, 2021.
M. Madanchian, “The role of complex systems in predictive analytics for e-commerce innovations in business management,” Systems, vol. 12, no. 10, p. 415, 2024.
V. Gallego, J. Lingan, A. Freixes, A. A. Juan, and C. Osorio, “Applying Machine Learning in Marketing: An Analysis Using the NMF and k-Means Algorithms,” Information, vol. 15, no. 7, p. 368, 2024.
I. Shafi et al., “A review of approaches for rapid data clustering: Challenges, opportunities, and future directions,” IEEE Access, vol. 12, pp. 138086–138120, 2024.
K. Tabianan, S. Velu, and V. Ravi, “K-means clustering approach for intelligent customer segmentation using customer purchase behavior data,” Sustainability, vol. 14, no. 12, p. 7243, 2022.
X. Xiahou and Y. Harada, “B2C E-commerce customer churn prediction based on K-means and SVM,” J. Theor. Appl. Electron. Commer. Res., vol. 17, no. 2, pp. 458–475, 2022.
T. Sumallika, V. Alekya, P. V. M. Raju, M. R. Rao, D. E. G. Shiney, and M. V. Sudha, “Exploring Optimal Cluster Quality in Health Care Data (HCD): Comparative Analysis utilizing k-means Elbow and Silhouette Analysis,” Int. J. Chem. Biochem. Sci., vol. 25, no. 16, pp. 48–60, 2024.
O. T. Kufile, B. O. Otokiti, A. Yusuf, B. O. Onifade, and C. H. Okolo, “Developing behavioral analytics models for multichannel customer conversion optimization,” Integration, vol. 23, p. 24, 2021.
Gupta, S., & Israni, D. (2024, October). Machine Learning based Customer Behavior Analysis and Segmentation for Personalized Recommendations. In 2024 2nd International Conference on Self Sustainable Artificial Intelligence Systems (ICSSAS) (pp. 654-660). IEEE. 10.1109/ICSSAS64001.2024.10760319
Tabianan, K., Velu, S., & Ravi, V. (2022). K-means clustering approach for intelligent customer segmentation using customer purchase behavior data. Sustainability, 14(12), 7243.https://doi.org/10.3390/su14127243
Ullah, A., Mohmand, M. I., Hussain, H., Johar, S., Khan, I., Ahmad, S., ... & Huda, S. (2023). Customer analysis using machine learning-based classification algorithms for effective segmentation using recency, frequency, monetary, and time. sensors, 23(6), 3180. https://doi.org/10.3390/s23063180
Akande, O. N., Akande, H. B., Asani, E. O., & Dautare, B. T. (2024, April). Customer Segmentation through RFM Analysis and K-means Clustering: Leveraging Data-Driven Insights for Effective Marketing Strategy. In 2024 International Conference on Science, Engineering and Business for Driving
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Ade Guna Suteja

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
