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Customer Segmentation 2

The document outlines a project on customer segmentation using data science techniques, detailing the transition from design to implementation. It includes steps for refining objectives, data collection, preprocessing, exploratory data analysis, and deep learning concepts. The project aims to analyze mall customer data and apply machine learning methods to derive insights and improve customer understanding.
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0% found this document useful (0 votes)
12 views19 pages

Customer Segmentation 2

The document outlines a project on customer segmentation using data science techniques, detailing the transition from design to implementation. It includes steps for refining objectives, data collection, preprocessing, exploratory data analysis, and deep learning concepts. The project aims to analyze mall customer data and apply machine learning methods to derive insights and improve customer understanding.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CUSTOMER SEGMENTATION

Project Overview
Project Title: Customer Segmentation using Data Science Techniques.
Project Phase: Phase 2 – Transforming Design into Innovation in
Applied Data Science
Dataset Link:
https://www.kaggle.com/datasets/akram24/mall-
customers

INTRODUCTION
In the previous phase, we discussed the design phase of our Applied Data
Science project, where we defined the problem, set objectives, and created a
high-level plan. Now, we will outline the steps to put our design into
innovation and transform our ideas into a working solution. We will also
provide an example Python program with a dataset to illustrate the process.

Step 1: Refining Objectives

• Review and refine the project objectives based on the insights gained
during the design phase.
• Ensure that the objectives are SMART (Specific, Measurable,
Achievable, Relevant, Time-bound)

Step 2: Data Collection and Preparation

 Identify the data sources needed to address the Collect customer data, including
attributes like purchase history, demographic information, and interaction
behavior.
Step 1: Import the libraries

Step 2: Using pandas libraries read the csv file

Step 3: Print the head of the csv file

Output:

 Data Preproessing
Cleaning and preprocessing data for mall customers from a CSV file
typically involves tasks like handling missing values, encoding
categorical features, and scaling or normalizing numerical features.
Here’s a Python program using the pandas library to clean and
preprocess a CSV file containing mall customer data:
(1) Check for missing values

Output:

(2) Handling Missing values (if any)


(3) Encode categorical features(if any)
Example: Encode the ‘Genre’ column using Label Encoding
(4) Display the first few rows of the cleaned data
 Feature Engineering
Create additional features that capture customer behavior and
preferences, such as total spending, frequency of purchases,
etc.

In ths above Code shows,


1. Import packages
2. Load the dataset from the provided path
3. Feature Engineering
4. Save the modified Dataframe back to a CSV file

This code will create a new CSV file named


“modified_mall_customers.csv” in the current directory, containing
the original columns and the newly added ‘Total_Spending’
column. The ‘index=False’ argument that the DataFrame index is
not saved as a separate column in the CSV file.
MTHOD 1
Exploratory Data Analysis (EDA)
 Perform exploratory data Analysis to gain insights into the dataset.
 Visualize data to identify patterns,trends, and potential relationships.
 Use statistical methods to summarize and analyze data.
 Download the dataset from the Kaggle link you provided.
 Install the necessary Python libraries if you haven't already. You can
use `pandas`, `matplotlib`, and `seaborn` for data manipulation and
visualization. You can install these libraries using pip:

Step 1:
pip install pandas matplotlib seaborn

Step 2: Import the required libraries and load the dataset:

OUTPUT:

Step 2:

STEP 3: Explore the dataset to understand its structure and the type of data
it contains:
OUTPUT:

STEP 4: Perform data visualization to gain insights into the dataset:


Here are some example visualizations we can create:
-Histogram of Age Distribution:

OUTPUT:
-Gender distribution

OUTPUT:
Spending Score vs. Annual Income:
-

OUTPUT:
-Age vs. Spending Score:

OUTPUT:
METHOD 2
DEEP LEARNING ARCHITECTURE
Deep learning is a subfield of machine learning that focuses on
artificial neural networks and algorithms inspired by the structure
and function of the human brain. It's a subset of machine learning
that has gained significant attention and popularity due to its ability
to learn from large amounts of data and solve complex tasks. Here's
an explanation of key concepts in deep learning:

1. Neural Networks: At the core of deep learning are artificial


neural networks, which are composed of interconnected nodes or
neurons. These neurons are organized into layers, typically
including an input layer, one or more hidden layers, and an output
layer. Each connection between neurons has an associated weight
that determines the strength of the connection.

2. Deep Neural Networks (DNNs): When a neural network has


multiple hidden layers, it's referred to as a deep neural network.
Deep networks are capable of learning intricate patterns and
representations in data, which makes them suitable for complex
tasks.

3. Activation Functions: Activation functions introduce non-


linearity into neural networks, enabling them to model complex
relationships in data. Common activation functions include ReLU
(Rectified Linear Unit), Sigmoid, and Tanh.

4. Training: Deep learning models are trained using optimization


algorithms like gradient descent. During training, the model learns
the optimal weights for connections between neurons to minimize
the difference between predicted and actual outputs (i.e., the loss or
error).
5. Backpropagation: Backpropagation is a key algorithm for
training deep neural networks. It calculates the gradient of the loss
function with respect to the model's parameters (weights and
biases) and updates them in the direction that reduces the loss.

6. Convolutional Neural Networks (CNNs): CNNs are a type of


deep neural network designed for processing grid-like data, such as
images and videos. They use convolutional layers to automatically
learn hierarchical features from the input.

7. Recurrent Neural Networks (RNNs): RNNs are designed for


sequential data, making them suitable for tasks like natural
language processing and time series prediction. They have loops
within their architecture to maintain a hidden state that captures
information from previous time steps.

8. Long Short-Term Memory (LSTM) and Gated Recurrent


Unit (GRU): LSTM and GRU are specialized RNN architectures
that address the vanishing gradient problem, allowing them to
capture long-range dependencies in sequential data.

9. Autoencoders: Autoencoders are neural networks used for


unsupervised learning and dimensionality reduction. They aim to
reconstruct their input data, learning a compressed representation in
the process.

10. Generative Adversarial Networks (GANs): GANs consist of


two neural networks, a generator and a discriminator, which
compete against each other. GANs are used for generating
synthetic data and have applications in image generation and data
augmentation.
11. Transfer Learning: Transfer learning involves using pre-
trained models and fine-tuning them for a specific task. This
approach saves training time and data, making it a powerful
technique in deep learning.

12. Deep Reinforcement Learning: In this subfield, deep neural


networks are combined with reinforcement learning algorithms to
train agents to make sequential decisions in environments. Deep
RL has achieved remarkable success in tasks like game playing and
robotics.

Deep learning has found applications in various domains, including


computer vision, natural language processing, speech recognition,
recommendation systems, healthcare, finance, and many others. Its
ability to automatically learn and represent data in a hierarchical
manner has led to breakthroughs in solving complex problems and
has contributed to the rapid advancement of artificial intelligence.

PYTHON CODE:
OUTPUT:
Submitted By:
S. Dhanalakshmi B.tech information Technology
IBM Naan Mudhalvan Applied Data Science Group 2 (PHASE
2)

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