Answer to Question #240705 in Management for Steve

Question

Data mining in its broadest sense is a process that uses statistical, mathematical, artificial
intelligence and other techniques to extract useful information from large databases. Under
this wide definition most types of data analysis can be classified as data mining. It is used to
identify patterns or trends in the data in data warehouses which can be used for improved profit.
Particular data mining techniques include: -
i. Identifying associations
ii. Identifying sequences
iii. Classification
iv. Clustering
v. Modelling
Using practical examples, discuss in details the use and application each of the data mining
technique mentioned above. (20 Marks)

Answer 1

Utilizing large and information-rich transactional and customer data (that they collect on a daily basis) to optimize their business processes is not a choice for large-scale retailers anymore, but a necessity to stay competitive.

Despite the importance of data mining techniques to customer relationship management (CRM), there is a lack of a comprehensive literature review and a classification scheme for it. This is the first identifiable academic literature review of the application of data mining techniques to CRM.