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The Art of Data-Driven Business

You're reading from   The Art of Data-Driven Business Transform your organization into a data-driven one with the power of Python machine learning

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Product type Paperback
Published in Dec 2022
Publisher Packt
ISBN-13 9781804611036
Length 314 pages
Edition 1st Edition
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Author (1):
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Alan Bernardo Palacio Alan Bernardo Palacio
Author Profile Icon Alan Bernardo Palacio
Alan Bernardo Palacio
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Table of Contents (17) Chapters Close

Preface 1. Part 1: Data Analytics and Forecasting with Python
2. Chapter 1: Analyzing and Visualizing Data with Python FREE CHAPTER 3. Chapter 2: Using Machine Learning in Business Operations 4. Part 2: Market and Customer Insights
5. Chapter 3: Finding Business Opportunities with Market Insights 6. Chapter 4: Understanding Customer Preferences with Conjoint Analysis 7. Chapter 5: Selecting the Optimal Price with Price Demand Elasticity 8. Chapter 6: Product Recommendation 9. Part 3: Operation and Pricing Optimization
10. Chapter 7: Predicting Customer Churn 11. Chapter 8: Grouping Users with Customer Segmentation 12. Chapter 9: Using Historical Markdown Data to Predict Sales 13. Chapter 10: Web Analytics Optimization 14. Chapter 11: Creating a Data-Driven Culture in Business 15. Index 16. Other Books You May Enjoy

Feature engineering

To be able to properly analyze the data as well as to model the clusters, we will need to clean and structure the data—a step that is commonly referred to as feature engineering—as we need to restructure some of the variables according to our plan of analysis.

In this section, we will be performing the next steps to clean and structure some of the dataset features, with the goal of simplifying the existing variables and creating features that are easier to understand and describe the data properly:

  1. Create an Age variable for a customer by using the Year_Birth feature, indicating the birth year of the respective person.
  2. Create a Living_With feature to simplify the marital status, to describe the living situation of couples.
  3. Create a Children feature to indicate the total number of children in a household—that is, kids and teenagers.
  4. Aggregate spending by product type to better capture consumer behaviors.
  5. Indicate parenthood...
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