A hybrid approach towards identifying optimal prices by segmenting customers using active and inactive criteria

Gangane, Tejali (2023) A hybrid approach towards identifying optimal prices by segmenting customers using active and inactive criteria. Masters thesis, Dublin, National College of Ireland.

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Abstract

Everchanging customer behaviour and meeting the demands of such dynamic customers have been the constant focus of the business to make themselves customer-centric. Along with that, analysing the factors affecting the purchase of a product and the price for such products is also important. The traditional methodology of setting optimal prices makes use of mathematical models. Few studies work towards the usage of customer segments for price prediction. Therefore, the study addressed in this report works towards further exploration of the usage of customer segmentation along with customer lifetime value (CLV) for generating optimal prices for each product and performing product segmentation as well. This study segments the customers based on the active or inactive state and generates CLV for each customer and uses the information to set up optimal prices. The study tweaks the formula for CLV with the addition of LoyaltyRate. The product segmentation is performed using a TF-IDF vectorizer and K-means clustering. The results show that, with the usage of such segmentation criteria, the optimal prices help to generate higher revenue for the businesses.

Item Type:	Thesis (Masters)
Supervisors:	Name Email Ul Ain, Qurrat UNSPECIFIED
Subjects:	Q Science > QA Mathematics > Electronic computers. Computer science T Technology > T Technology (General) > Information Technology > Electronic computers. Computer science H Social Sciences > HF Commerce > Customer Service H Social Sciences > HF Commerce > Marketing
Divisions:	School of Computing > Master of Science in Data Analytics
Depositing User:	Tamara Malone
Date Deposited:	22 Nov 2024 11:14
Last Modified:	22 Nov 2024 11:14
URI:	https://norma.ncirl.ie/id/eprint/7187

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