Market Basket Analysis

Market basket analysis with Apriori algorithm

The retailer wants to target customers with suggestions on itemset that a customer is most likely to purchase .I was given dataset contains data of a retailer; the transaction data provides data around all the transactions that have happened over a period of time. Retailer will use result to grove in his industry and provide for customer suggestions on itemset, we be able increase customer engagement and improve customer experience and identify customer behavior. I will solve this problem with use Association Rules type of unsupervised learning technique that checks for the dependency of one data item on another data item.

Introduction

Association Rule is most used when you are planning to build association in different objects in a set. It works when you are planning to find frequent patterns in a transaction database. It can tell you what items do customers frequently buy together and it allows retailer to identify relationships between the items.

An Example of Association Rules

Assume there are 100 customers, 10 of them bought Computer Mouth, 9 bought Mat for Mouse and 8 bought both of them. - bought Computer Mouth => bought Mat for Mouse - support = P(Mouth & Mat) = 8/100 = 0.08 - confidence = support/P(Mat for Mouse) = 0.08/0.09 = 0.89 - lift = confidence/P(Computer Mouth) = 0.89/0.10 = 8.9 This just simple example. In practice, a rule needs the support of several hundred transactions, before it can be considered statistically significant, and datasets often contain thousands or millions of transactions.

Strategy

• Data Import
• Data Understanding and Exploration
• Transformation of the data – so that is ready to be consumed by the association rules algorithm
• Running association rules
• Exploring the rules generated
• Filtering the generated rules
• Visualization of Rule

Dataset Description

• File name: Assignment-1_Data
• List name: retaildata
• File format: . xlsx
• Number of Row: 522065

• Number of Attributes: 7

  • BillNo: 6-digit number assigned to each transaction. Nominal.
  • Itemname: Product name. Nominal.
  • Quantity: The quantities of each product per transaction. Numeric.
  • Date: The day and time when each transaction was generated. Numeric.
  • Price: Product price. Numeric.
  • CustomerID: 5-digit number assigned to each customer. Nominal.
  • Country: Name of the country where each customer resides. Nominal.

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Libraries in R

First, we need to load required libraries. Shortly I describe all libraries.

• arules - Provides the infrastructure for representing, manipulating and analyzing transaction data and patterns (frequent itemsets and association rules).
• arulesViz - Extends package 'arules' with various visualization. techniques for association rules and item-sets. The package also includes several interactive visualizations for rule exploration.
• tidyverse - The tidyverse is an opinionated collection of R packages designed for data science.
• readxl - Read Excel Files in R.
• plyr - Tools for Splitting, Applying and Combining Data.
• ggplot2 - A system for 'declaratively' creating graphics, based on "The Grammar of Graphics". You provide the data, tell 'ggplot2' how to map variables to aesthetics, what graphical primitives to use, and it takes care of the details.
• knitr - Dynamic Report generation in R.
• magrittr- Provides a mechanism for chaining commands with a new forward-pipe operator, %>%. This operator will forward a value, or the result of an expression, into the next function call/expression. There is flexible support for the type of right-hand side expressions.
• dplyr - A fast, consistent tool for working with data frame like objects, both in memory and out of memory.
• tidyverse - This package is designed to make it easy to install and load multiple 'tidyverse' packages in a single step.

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Data Pre-processing

Next, we need to upload Assignment-1_Data. xlsx to R to read the dataset.Now we can see our data in R.

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After we will clear our data frame, will remove missing values.

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To apply Association Rule mining, we need to convert dataframe into transaction data to make all items that are bought together in one invoice will be in ...

Source Paper

This dataset is from my paper:

Heaton, J. (2016, March). Comparing dataset characteristics that favor the Apriori, Eclat or FP-Growth frequent itemset mining algorithms. In SoutheastCon 2016 (pp. 1-7). IEEE.

Frequent itemset mining is a popular data mining technique. Apriori, Eclat, and FP-Growth are among the most common algorithms for frequent itemset mining. Considerable research has been performed to compare the relative performance between these three algorithms, by evaluating the scalability of each algorithm as the dataset size increases. While scalability as data size increases is important, previous papers have not examined the performance impact of similarly sized datasets that contain different itemset characteristics. This paper explores the effects that two dataset characteristics can have on the performance of these three frequent itemset algorithms. To perform this empirical analysis, a dataset generator is created to measure the effects of frequent item density and the maximum transaction size on performance. The generated datasets contain the same number of rows. This provides some insight into dataset characteristics that are conducive to each algorithm. The results of this paper's research demonstrate Eclat and FP-Growth both handle increases in maximum transaction size and frequent itemset density considerably better than the Apriori algorithm.

Files Generated

We generated two datasets that allow us to adjust two independent variables to create a total of 20 different transaction sets. We also provide the Python script that generated this data in a notebook. This Python script accepts the following parameters to specify the transaction set to produce:

• Transaction/Basket count: 5 million default
• Number of items: 50,000 default
• Number of frequent sets: 100 default
• Max transaction/basket size: independent variable, 5-100 range
• Frequent set density: independent variable, 0.1 to 0.8 range

Files contained in this dataset reside in two folders: * freq-items-pct - We vary the frequent set density in these transaction sets. * freq-items-tsz - We change the maximum number of items per basket in these transaction sets.

While you can vary basket count, the number of frequent sets, and the number of items in the script, they will remain fixed at this paper's above values. We determined that the basket count only had a small positive correlation.

File Content

The following listing shows the type of data generated for this research. Here we present an example file created with ten baskets out of 100 items, two frequent itemsets, a maximum basket size of 10, and a density of 0.5.

I36 I94 
I71 I13 I91 I89 I34
F6 F5 F3 F4 
I86 
I39 I16 I49 I62 I31 I54 I91 
I22 I31 
I70 I85 I78 I63 
F4 F3 F1 F6 F0 I69 I44 
I82 I50 I9 I31 I57 I20 
F4 F3 F1 F6 F0 I87

As you can see from the above file, the items are either prefixed with “I” or “F.” The “F” prefix indicates that this line contains one of the frequent itemsets. Items with the “I” prefix are not part of an intentional frequent itemset. Of course, “I” prefixed items might form frequent itemsets, as they are uniformly sampled from the number of things to fill out nonfrequent itemsets. Each basket will have a random size chosen, up to the maximum basket size. The frequent itsemset density specifies the probability of each line containing one of the intentional frequent itemsets. Because we used a density of 0.5, approximately half of the lines above include one of the two intentional frequent itemsets. A frequent itemset line may have additional random “I” prefixed items added to cause the line to reach the randomly chosen length for that line. If the frequent itemset selected does cause the generated sequence to exceed its randomly chosen length, no truncation will occur. The intentional frequent itemsets are all determined to be less than or equal to the maximum basket size.

Analysis of ‘Groceries dataset ’ provided by Analyst-2 (analyst-2.ai), based on source dataset retrieved from https://www.kaggle.com/heeraldedhia/groceries-dataset on 28 January 2022.

--- Dataset description provided by original source is as follows ---

Association Rule Mining

Market Basket Analysis is one of the key techniques used by large retailers to uncover associations between items. It works by looking for combinations of items that occur together frequently in transactions. To put it another way, it allows retailers to identify relationships between the items that people buy.

Association Rules are widely used to analyze retail basket or transaction data and are intended to identify strong rules discovered in transaction data using measures of interestingness, based on the concept of strong rules.

Details of the dataset

The dataset has 38765 rows of the purchase orders of people from the grocery stores. These orders can be analysed and association rules can be generated using Market Basket Analysis by algorithms like Apriori Algorithm.

Apriori Algorithm

Apriori is an algorithm for frequent itemset mining and association rule learning over relational databases. It proceeds by identifying the frequent individual items in the database and extending them to larger and larger item sets as long as those item sets appear sufficiently often in the database. The frequent itemsets determined by Apriori can be used to determine association rules which highlight general trends in the database: this has applications in domains such as market basket analysis.

An example of Association Rules

Assume there are 100 customers 10 of them bought milk, 8 bought butter and 6 bought both of them. bought milk => bought butter support = P(Milk & Butter) = 6/100 = 0.06 confidence = support/P(Butter) = 0.06/0.08 = 0.75 lift = confidence/P(Milk) = 0.75/0.10 = 7.5

Note: this example is extremely small. In practice, a rule needs the support of several hundred transactions, before it can be considered statistically significant, and datasets often contain thousands or millions of transactions.

Some important terms:

• Support: This says how popular an itemset is, as measured by the proportion of transactions in which an itemset appears.

• Confidence: This says how likely item Y is purchased when item X is purchased, expressed as {X -> Y}. This is measured by the proportion of transactions with item X, in which item Y also appears.

• Lift: This says how likely item Y is purchased when item X is purchased while controlling for how popular item Y is.

--- Original source retains full ownership of the source dataset ---

Quantitative data in the database for Example 1.

Background: As time evolved, traditional Chinese medicine (TCM) became integrated into the global medical system as complementary treatments. Some essential TCM herbs started to play a limited role in clinical practices because of Western medication development. For example, Fuzi (Aconiti Lateralis Radix Praeparata) is a toxic but indispensable TCM herb. Fuzi was mainly used in poor circulation and life-threatening conditions by history records. However, with various Western medication options for treating critical conditions currently, how is Fuzi used clinically and its indications in modern TCM are unclear. This study aimed to evaluate Fuzi and Fuzi-based formulas in modern clinical practices using artificial intelligence and data mining methods.Methods: This nationwide descriptive study with market basket analysis used a cohort selected from the Taiwan National Health Insurance database that contained one million national representatives between 2003 and 2010 used for our analysis. Descriptive statistics were performed to demonstrate the modern clinical indications of Fuzi. Market basket analysis was calculated by the Apriori algorithm to discover the association rules between Fuzi and other TCM herbs.Results: A total of 104,281 patients using 405,837 prescriptions of Fuzi and Fuzi-based formulas were identified. TCM doctors were found to use Fuzi in pulmonary (21.5%), gastrointestinal (17.3%), and rheumatologic (11.0%) diseases, but not commonly in cardiovascular diseases (7.4%). Long-term users of Fuzi and Fuzi-based formulas often had the following comorbidities diagnosed by Western doctors: osteoarthritis (31.0%), peptic ulcers (29.5%), hypertension (19.9%), and COPD (19.7%). Patients also used concurrent medications such as H2-receptor antagonists, nonsteroidal anti-inflammatory drugs, β-blockers, calcium channel blockers, and aspirin. Through market basket analysis, for the first time, we noticed many practical Fuzi-related herbal pairs such as Fuzi–Hsihsin (Asari Radix et Rhizoma)–Dahuang (Rhei Radix et Rhizoma) for neurologic diseases and headache.Conclusion: For the first time, big data analysis was applied to uncover the modern clinical indications of Fuzi in addition to traditional use. We provided necessary evidence on the scientific use of Fuzi in current TCM practices, and the Fuzi-related herbal pairs discovered in this study are helpful to the development of new botanical drugs.

An overview of the avocado content (grams avocado per 100 g food) at food group levelsb'*' in which avocado-containing products were found.

Food items containing avocados at meal occasions.