ABSTRACT
This chapter describes data mining concepts, discusses a framework for understanding data mining, and explores specific tools and techniques. Data mining is becoming attractive to business organizations because it can provide a competitive edge. Data mining begins by organizing and storing data in an appropriate fashion. It then shifts through this large data volume using pattern recognition algorithms as well as statistical and mathematical techniques. Data mining enables organizations to leverage data stores for strategic advantage. With data mining tools, organizations can comb through their data looking for patterns and relationships that predict customers' buying behaviors, that identify consumers likely to default on loans or perpetrate fraud, or that anticipate unusual demands on inventory. In the highly competitive airline market, data mining tools can be used on data from reservations, travel, ticketing, and operations to discover patterns, relationships, or associations to improve a number of important factors ranging from customer satisfaction to flight yield management.
