As merchandisers gained the ability to record transaction data, they started collecting and analyzing data about consumer behavior.
The term data mining is used to describe the collection of analysis techniques used to infer rules from or build models from large
data sets. One of the best-known examples of data mining in commerce is the discovery of association rules – relationships between
items that indicate a relationship between the purchase of one item and the purchase of another. These rules can help a merchandiser
arrange products so that, for example, a consumer purchasing ketchup sees relish nearby. More sophisticated temporal data mining
may suggest that a consumer who buys a new charcoal grill today is likely to buy a fire extinguisher in the next month.
More generally, data mining has two phases. In the learning phase, the data mining system analyzes the data and builds a model of
consumer behavior (e.g., association rules). This phase is often very time-consuming and may require the assistance of human
analysts. After the model is built, the system enters a use phase where the model can be rapidly and easily applied to consumer
situations. One of the challenges in implementing data mining within organizations is creating the organizational processes that
successfully transfer the knowledge from the learning phase into practice in the use phase.
Automatic recommender systems are machine learning systems specialized to recommend products in commerce applications. Some
recommenders have an offline phase during which they learn a model of customer behavior, and then an online phase during which
they apply the model in real time. Most recommenders, however, use a lazy learning approach, in which they build and update the
model while making recommendations in real time.
As merchandisers gained the ability to record transaction data, they started collecting and analyzing data about consumer behavior.
The term data mining is used to describe the collection of analysis techniques used to infer rules from or build models from large
data sets. One of the best-known examples of data mining in commerce is the discovery of association rules – relationships between
items that indicate a relationship between the purchase of one item and the purchase of another. These rules can help a merchandiser
arrange products so that, for example, a consumer purchasing ketchup sees relish nearby. More sophisticated temporal data mining
may suggest that a consumer who buys a new charcoal grill today is likely to buy a fire extinguisher in the next month.
More generally, data mining has two phases. In the learning phase, the data mining system analyzes the data and builds a model of
consumer behavior (e.g., association rules). This phase is often very time-consuming and may require the assistance of human
analysts. After the model is built, the system enters a use phase where the model can be rapidly and easily applied to consumer
situations. One of the challenges in implementing data mining within organizations is creating the organizational processes that
successfully transfer the knowledge from the learning phase into practice in the use phase.
Automatic recommender systems are machine learning systems specialized to recommend products in commerce applications. Some
recommenders have an offline phase during which they learn a model of customer behavior, and then an online phase during which
they apply the model in real time. Most recommenders, however, use a lazy learning approach, in which they build and update the
model while making recommendations in real time.
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