Data Mining Application and Competitive Advantage Among Supermarkets in Nairobi County, Kenya
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Date
2023Author
Mungai, Humphrey K
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The objective of the study was threefold; to establish the extent of data mining applications
use, establish challenges experienced in data mining, and to determine the relationship between
data mining applications and competitive advantage among Supermarkets in Nairobi County.
In order to achieve these objectives, the study used descriptive survey. Primary data were
collected using questionnaires. The responses were from supermarkets operating in the Nairobi
County. Data analysis was conducted using frequencies, percentages, means, and regression.
The results revealed supermarkets have greater extent of adoption of predictive modeling
ability, moderate adoption of customer segmentation and market development. However, there
is still little extent of adoption of customer insights through text analysis. Second, supermarkets
experience various challenges that make them not to gain full benefits from data mining
applications. Core challenges come from not understanding how to work with new software
that needs updates and integration into legacy systems. They also noted difficulties of design
data warehouse for purposes of supporting data extraction, loading, and transformation.
Nonetheless, the results showed stronger positive statistically significant effect of data mining
applications on competitive advantage by 36% variance. However, the concepts of data mining
had different contribution. For example, predictive modeling ability was found to have the
strongest positive. While customer segmentation and market development showed moderate
positive effect, customer analysis on the other hand, had little positive impact. Data mining
applications allows businesses collect large volumes of data from customer transactions at a
high speed. The use of data mining in predictive modeling, customer segmentation, insights
analysis, and market development makes it possible to identify hidden patterns to understand
costs, revenue, marketing expenses, and reaction of customers towards products.
Consequently, management relies on these insights to make decisions that shape differentiation
and costing strategies. These are the backbones of competitive advantage not just in
supermarkets, but also other business environment
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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