Machine Learning-Based Consumer Behavior Analysis for Supporting MSME Business Strategies
Keywords:
Machine Learning, Consumer Behavior Analysis, MSMEs, Business Strategy, Customer Segmentation.Abstract
Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in supporting regional economic growth and improving community welfare. However, many MSMEs still face challenges in understanding consumer behavior, which affects the effectiveness of business strategies and decision-making processes. This study aims to apply machine learning techniques to analyze consumer behavior patterns and support the development of business strategies for MSMEs under the supervision of the Deli Serdang Regency Cooperative and MSME Office. The research utilizes consumer transaction and interaction data collected from selected MSMEs, including purchasing frequency, product preferences, transaction values, and customer demographic characteristics. Data preprocessing was conducted to ensure data quality through cleaning, transformation, and normalization processes. Subsequently, machine learning algorithms were employed to identify consumer behavior patterns and classify customer segments based on their purchasing characteristics. The analysis results reveal several distinct consumer groups with different preferences and purchasing habits, enabling MSME managers to develop more targeted marketing strategies and improve customer relationship management. The findings also demonstrate that machine learning can effectively assist in extracting valuable insights from large datasets, providing data-driven recommendations for business decision-making. Furthermore, the proposed approach contributes to enhancing the competitiveness and sustainability of MSMEs by enabling better market understanding and strategic planning. This research highlights the potential of machine learning applications in supporting digital transformation initiatives within the MSME sector and provides practical implications for policymakers and business stakeholders in formulating more effective development programs. The study concludes that machine learning-based consumer behavior analysis can serve as a valuable tool for supporting MSME business strategies and improving overall business performance.
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