IAES International Journal of Artificial Intelligence (IJ-AI)
Vol 14, No 3: June 2025

Customer segmentation using association rule mining on retail transaction data

Kajornkasirat, Siriwan (Unknown)
Gunglin, Pattarawan (Unknown)
Puangsuwan, Kritsada (Unknown)
Kaewsuwan, Nawapon (Unknown)



Article Info

Publish Date
01 Jun 2025

Abstract

This research aimed to investigate a suitable algorithm for customer segmentation using as customer behavior indicators the recency, frequency, and monetary (RFM) values of the customers. The clustering algorithms K-means, fuzzy C-means, and self-organizing neural network (SONN) were compared for finding the most appropriate algorithm. The customer segmentation was analyzed using association rule mining with the frequent pattern algorithm (FP-Growth). Data on retail transactions during January 2021 - May 2023 were obtained from Tuenjai Company, Thailand, with a total of 202,469 records. The results from the three algorithms were compared by the silhouette coefficient (SC), Calinski-Harabasz (CH) index, Davies-Bouldin (DB) index, iteration count, and execution time. The results showed that the K-means algorithm was the most suitable algorithm for customer segmentation in this study. K-means clustering grouped the customers into three groups here labeled as “important value”, “general development”, and “lost”, based on the RFM values. There were 38 rules for the important value segment, and two rules each for the general development and the lost groups. These results could be useful to the business organization for improving the customer experiences, increasing sales, preparing or promoting products, and stock management efficiency.

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Journal Info

Abbrev

IJAI

Publisher

Subject

Computer Science & IT Engineering

Description

IAES International Journal of Artificial Intelligence (IJ-AI) publishes articles in the field of artificial intelligence (AI). The scope covers all artificial intelligence area and its application in the following topics: neural networks; fuzzy logic; simulated biological evolution algorithms (like ...