Determining Bundling Packages and Promos Using FP-Growth Based on Customer Behavior

An effective sales strategy is an essential factor for business success amidst intense competition in online retail or e-commerce. Online retail or e-commerce stores have abundant sales data, which is often not utilized as a sales strategy. This research aims to optimize Shopee’s online retail or e-commerce sales data in April and June 2022 as a sales strategy. The sales strategy is to create bundling and promotional packages. The determination of bundling and promotional packages is carried out using data mining techniques, especially the FP-Growth algorithm, which is the association method based on understanding customer behavior. The results of the analysis produced 14 bundling packages or rules, with 10 of them having different rules. The resulting bundling has a practical minimum support value of 0.0005, confidence 1, and the highest lift ratio of 445.69. The resulting bundling also has a promotional package price determined using the dynamic pricing method. Thus, the results of this research are able to create bundling and promotional packages using FP-Growth based on customer behavior as a sales strategy amidst intense competition in online retail or e-commerce.

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Publication Details

Published
2024-09-05
DOI
https://doi.org/10.1109/icitri62858.2024.10698764
Primary Topic
Industrial Vision Systems and Defect Detection
Type
article
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article

Determining Bundling Packages and Promos Using FP-Growth Based on Customer Behavior

Niken Pratiwi, Sudianto Sudianto, Atika Ratna Dewi
Industrial Vision Systems and Defect Detection
article

Determining Bundling Packages and Promos Using FP-Growth Based on Customer Behavior

Niken Pratiwi, Sudianto Sudianto, Atika Ratna Dewi
article en

Abstract

An effective sales strategy is an essential factor for business success amidst intense competition in online retail or e-commerce. Online retail or e-commerce stores have abundant sales data, which is often not utilized as a sales strategy. This research aims to optimize Shopee’s online retail or e-commerce sales data in April and June 2022 as a sales strategy. The sales strategy is to create bundling and promotional packages. The determination of bundling and promotional packages is carried out using data mining techniques, especially the FP-Growth algorithm, which is the association method based on understanding customer behavior. The results of the analysis produced 14 bundling packages or rules, with 10 of them having different rules. The resulting bundling has a practical minimum support value of 0.0005, confidence 1, and the highest lift ratio of 445.69. The resulting bundling also has a promotional package price determined using the dynamic pricing method. Thus, the results of this research are able to create bundling and promotional packages using FP-Growth based on customer behavior as a sales strategy amidst intense competition in online retail or e-commerce.

Muhammadiyah University Purwokerto (ID), Institut Teknologi Telkom Purwokerto (ID)
Openalex Percentile: Top 77%
Industrial Vision Systems and Defect Detection
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