Research Article

Price Prediction Model for Restaurants In Istanbul By Using Machine Learning Algorithms

Volume: 4 Number: 2 August 31, 2022
TR EN

Price Prediction Model for Restaurants In Istanbul By Using Machine Learning Algorithms

Abstract

Today, companies have created new products based on data and accelerated the digitalization processes of businesses with the concept of data science. In this study, a price prediction model is proposed with machine learning algorithms by collecting the data of businesses in the food and beverage sector in Istanbul. In this study, different machine learning modeling algorithms such as XGBoost, Random Forest, Artificial Neural Network, K-Nearest Neighbor, Multi Linear Regression and CatBoost were used for restaurant price prediction. Classification algorithms were tested for price prediction, and as a result of the evaluation, it was observed that XGBoost algorithm achieve the highest performance with 0.023236 RMSE and 0.0005399 MSE error rates. By this study, business owners will be able to understand how new developments they will make in their businesses will benefit in terms of price and customer feedback. It will enable entrepreneurs to have information about what features a new business should have and the average price they will offer to their customers according to these features. In addition, entrepreneurs who want to open a restaurant will learn how much they should cost, provide price performance, and increase their profitability by selling more products because they will sell their products at affordable prices. Accurate pricing is one of the four important concepts of marketing. The company needs to make the right pricing in order to hold on and create customer loyalty.

Keywords

References

  1. Alshari, H., Saleh, A. Y., & Odabas, A. (2021). Comparison of Gradient Boosting Decision Tree Algorithms for CPU Performance. Erciyes University Journal of Institue Of Science and Technology, 160-161.
  2. Breinman, L. (2001). Random Forest. University of California, 5-32.
  3. Chen, T., & Guestrin, C. (2016). XGBoost: A Scalable Tree Boosting System. Proceedings of the 22nd ACM SIGKDD International Conference on Knowledge Discovery and Data Mining, 785–794.
  4. Cinaroglu, S. (2017). Comparison of Machine Learning Regression Methods to Predict Health Expenditures. Uludağ Üniversitesi Mühendislik Fakültesi Dergisi, 189.
  5. Cover, T., & Hart, P. E. (1967). Nearest neighbor pattern classification. IEEE, 21-27.
  6. Ding, S., & Chen, L. (2010). Intelligent Optimization Methods for High-Dimensional Data Classification for Support Vector Machines. Intelligent Information Management, 1-12.
  7. Eslami, S. P., Ghasemaghaei, M., & Hassanein, K. (2018). Which online reviews do consumers find most helpful? A multi-method investigation. Decision Support Systems, 113, 32-42.
  8. Friedman, J. H. (2001). Greedy Function Approximation: A Gradient Boosting Machine. The Annals of Statistics, 1189-1232.

Details

Primary Language

English

Subjects

Business Administration

Journal Section

Research Article

Publication Date

August 31, 2022

Submission Date

July 25, 2022

Acceptance Date

August 16, 2022

Published in Issue

Year 2022 Volume: 4 Number: 2

APA
Şahinbaş, K. (2022). Price Prediction Model for Restaurants In Istanbul By Using Machine Learning Algorithms. Ekonomi İşletme Ve Maliye Araştırmaları Dergisi, 4(2), 159-171. https://doi.org/10.38009/ekimad.1148216
AMA
1.Şahinbaş K. Price Prediction Model for Restaurants In Istanbul By Using Machine Learning Algorithms. EKİMAD. 2022;4(2):159-171. doi:10.38009/ekimad.1148216
Chicago
Şahinbaş, Kevser. 2022. “Price Prediction Model for Restaurants In Istanbul By Using Machine Learning Algorithms”. Ekonomi İşletme Ve Maliye Araştırmaları Dergisi 4 (2): 159-71. https://doi.org/10.38009/ekimad.1148216.
EndNote
Şahinbaş K (August 1, 2022) Price Prediction Model for Restaurants In Istanbul By Using Machine Learning Algorithms. Ekonomi İşletme ve Maliye Araştırmaları Dergisi 4 2 159–171.
IEEE
[1]K. Şahinbaş, “Price Prediction Model for Restaurants In Istanbul By Using Machine Learning Algorithms”, EKİMAD, vol. 4, no. 2, pp. 159–171, Aug. 2022, doi: 10.38009/ekimad.1148216.
ISNAD
Şahinbaş, Kevser. “Price Prediction Model for Restaurants In Istanbul By Using Machine Learning Algorithms”. Ekonomi İşletme ve Maliye Araştırmaları Dergisi 4/2 (August 1, 2022): 159-171. https://doi.org/10.38009/ekimad.1148216.
JAMA
1.Şahinbaş K. Price Prediction Model for Restaurants In Istanbul By Using Machine Learning Algorithms. EKİMAD. 2022;4:159–171.
MLA
Şahinbaş, Kevser. “Price Prediction Model for Restaurants In Istanbul By Using Machine Learning Algorithms”. Ekonomi İşletme Ve Maliye Araştırmaları Dergisi, vol. 4, no. 2, Aug. 2022, pp. 159-71, doi:10.38009/ekimad.1148216.
Vancouver
1.Kevser Şahinbaş. Price Prediction Model for Restaurants In Istanbul By Using Machine Learning Algorithms. EKİMAD. 2022 Aug. 1;4(2):159-71. doi:10.38009/ekimad.1148216

Cited By