Application of K-Nearest Neighbor Algorithm for Consumer Behaviour Identification and Product Personalisation Based on Big Data Analysis

The rapid digital transformation has fundamentally altered the retail industry, presenting challenges such as shifting consumer behavior and intensified market competition. This research explores the application of the K-Nearest Neighbor (KNN) algorithm for identifying consumer behavior and developing product personalization systems based on big data insights. Utilizing a dataset comprising 10,000 transaction records from January to December 2023 and 5,302 product types, we implemented the KNN algorithm to predict consumer purchases. The data was processed into 89,908 distinct transaction records. Our evaluation, using 5-fold cross-validation, demonstrated that the optimal performance of the KNN model was achieved with 𝑘=10, yielding a precision of 0.8319, recall of 0.8311, and an F1-score of 0.8312. These findings highlight the effectiveness of KNN in enhancing consumer satisfaction through precise product recommendations. This study provides strategic insights for modern retailers aiming to leverage AI and big data to remain competitive and meet evolving consumer expectations.