Question: Data Set Information: The dataset has 3 8 7 6 5 rows comprising purchase orders of customers from grocery stores. These orders can be analysed

Data Set Information: The dataset has 38765 rows comprising purchase orders of customers from grocery stores. These orders can be analysed using Market Basket Analysis or clustering for performing RFM analysis.
Attribute Information:
Member Number: Nominal, a 4-digit integral number uniquely assigned to each member.
Item Description: Product (item) name. Nominal.
Date: Numeric, the day and time when each transaction was generated.
The dataset is available on BB
Guidelines:
You are required to deliver a report (max 15 pages including figures) describing the methods adopted and the discussion of achieved results with reference to the tasks listed below. Assume that the report is targeted to a marketing strategist, who is interested in learning the business insights inferred in your analysis and receiving suggestions on how to take appropriate actions.
Tasks
1. Data Understanding: useful as a preliminary step to capture basic data properties and schema. To understand the basic data properties, you need to perform distribution analysis, statistical exploration, suitable transformation of variables and elimination of missing values.
Identify as part of a UML class diagram the main classes and associations by assigning the correct cardinality constraints.
[12 Marks]
2. Perform RFM Segmentation in SQL: The first step is to build an RFM model to assign Recency, Frequency and Monetary values to each member via an SQL query.
[11 Marks]
3. Customer segmentation with DBSCAN: The second step is to divide the customer list into tiered groups using DBSCAN and discuss the profile of each found cluster (in terms of the properties that describe the customers of each cluster). The report should illustrate the adopted clustering methodology and the cluster interpretation. In particular, it is necessary to discuss the identification of the best value of \epsi and minPts.
[10 Marks]
4. Review of Results: Discuss briefly the business value for marketers of the specific clusters and segments of customers and their behaviour in terms of increased customer loyalty and customer lifetime value.
[8 Marks]
5. Data Mart Design: Based on your findings (Tasks (2,3)) and conclusions (Task 4), suggest the main dimensions and metrics for designing a data mart for the analysis needs of the marketing department.
[9 Marks]
Total [50 Marks]

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