ISyE 6501 Homework 15

ISyE 6501 Homework 15 Question 20.1 Describe analytics models that could be used to help the company monetize their data: How could the company use these data sets to generate value, and what analytics models might they need to do it? There are lots of good answers, and I want you to think about two types – at least one of your answers should be based on just one data set (the one they’ve collected internally on customer browsing patterns on the website), and at least one of your other answers should be based on combining more than one of the data sets. Using just Data Set #3 (collected by the company using website tracking code) – Classify and profile customers to identify their spending potential (how much they would be willing to spend for an item, as well as how much they could spend over time) Model 1: given the list of products purchased in the past, the price of the product (assuming this information is also available), the date of purchase, and the ship-to address, use K-means clustering to cluster customers into nine categories depending on the frequency of spending and the expensiveness of the product (low, medium, or high for both).