Machine Learning Application in Small and Micro Business Uncover Consumer Purchase Behavior using Market Basket Analysis

This paper analyzes consumer purchasing patterns in the reseller business of skincare, cosmetics, and health products named Bee Market ID to determine the right marketing strategy based on product sales history data. This study uses the Market Basket Analysis method to identify combinations of products frequently purchased by consumers. The secondary data for this research consists of the sales history of Bee Market ID in August 2023, which is readily exportable from the Shopee e-commerce platform. The consumer purchasing pattern at Bee Market ID, based on Market Basket Analysis, shows that when consumers buy the 'Geamoore Addicted Series Perfume 15ml’, they also purchase 'Zudaifu Ointment Cream 15g'. This pattern seems logical as part of a marketing strategy, as individuals who use body care products to enhance their appearance are likely to also seek to enhance their overall appearance with perfume. This pattern can be used for various marketing strategies such as product bundling, product recommendations, and gifts for loyal consumers. While this strategy can boost business growth, there is still untapped data beyond sales history that business owners can leverage. Further research can increase the data for more accurate analysis or employ other methods to enhance business development even further.