Factor based prediction model for customer behavior analysis

Abstract

Information Technology is nearing ubiquity stage in modern workplaces. The domain and applications of information technology is expanded abundantly. Any organization that wishes to improve their prospect in the market would definitely keep track their buyers’ perspective and emerging trends. In order to understand their aspirants, the companies are applying enormous technical ideas, tools and methodologies. Analysing more data and facts lead to better decision making. This is a strong perception of business intelligence experts. This work deals with a gradual transformation from instinct-driven approach to progressively data-driven approach. Understanding the expectations of the customers and improving their sales in particular to online trading. Therefore any business firm today have to access to unlimited amount of data. This include sales demographics, economic trends, competitive data and consumer behaviour, efficiency measures and financial calculations and more. Business Intelligence has a leading contribution in this venture. The empirical data are systematically gathered in order to analyse or test hypotheses and consequently make new observations and experiments that leads to gain new insights. The factor based principle component analysis method is used to select the important customer buying factors to analyze their behavior.