In the first part of this paper we present an overview of e-commerce and Internet characteristics. We explain why data mining plays a central role among the digital marketing technique: it is the tool to achieve customer knowledge, the key of success in the wide but highly competitive world of Internet. In the second part we first introduce the Market Basket Analysis, a data mining technique used to analyze customer purchasing patterns and reveal products that are often bought together. Then we present an example of application of this technique by looking for associations in a test dataset of purchases of an on-line supermarket. The business objective is to implement the best strategy in promoting products in the on-line store. We conclude suggesting a dynamic category management strategy.
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Paper provided by Department of Economics University of Milan Italy in its series Departemental Working Papers with number
2005-20.
Find related papers by JEL classification: M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing M37 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Advertising
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