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# Unsupervised_ML | ||
The Goal is to segment customers based in their behaviors and attributes, providing valuable insights for marketing strategies. Although customer segmentation is a typical application clustering, the data set chosen here offers a fresh perspective beyond the standard academic dataset. | ||
# Mall Customer Segmentation | ||
The Goal is to segment customers based in their behaviors and attributes, providing valuable insights for marketing strategies. Although customer segmentation is a typical application clustering, the data set chosen here offers a fresh perspective beyond the standard academic dataset. | ||
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# Features | ||
. CustomerID : Unique identifier for the customer | ||
. Gender : Customer's gender | ||
. Age : Customer's age | ||
. Annual Income (k$) : Customer's annual income in thousand dollars | ||
. Spending Score (1-100) : Score assigned by the mall based on customer behavior and spending nature | ||
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# Task 1: Data Loading and Preprocessing | ||
. Load the dataset. The dataset can be sourced from Kaggle: Mall Customer Segmentation Data Link: | ||
https://www.kaggle.com/datasets/vjchoudhary7/customer-segmentation-tutorial-in-python. | ||
. Conduct necessary preprocessing steps, including handling missing values if any and encoding categorical variables. | ||
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# Task 2: Exploratory Data Analysis (EDA) | ||
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. Perform an EDA to understand the dataset's characteristics, focusing on the distribution of key features like Age , Annual Income (k$) , | ||
and Spending Score . | ||
. Visualize the relationships between Annual Income (k$) and Spending Score, as these are crucial for understanding customer behavior. | ||
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# Task 3: Preparing Data for Clustering | ||
. Decide which features to use for clustering. While CustomerID should be excluded, consider whether Gender should be included and how it | ||
might affect the clustering process. | ||
. Normalize the data if necessary to ensure that the scale of the features does not unduly influence the clustering. | ||
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# Task 4: Applying K-Means Clustering | ||
. Apply K-Means clustering to the dataset. Start with a range of cluster numbers (e.g., 1 to 10) and use the elbow method to determine the optimal | ||
number of clusters. | ||
· Analyze the characteristics of each cluster. What does each cluster represent in terms of customer segmentation? | ||
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# Task 5: Evaluation and Interpretation | ||
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. Evaluate the clustering result. Discuss how well the segmentation aligns with your expectations and any insights gained from this exercise. | ||
. Visualize the clusters in a 2D plot, using Annual Income (k$) and Spending Score for the axes, to illustrate the customer segments. | ||
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