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.
Primary Language | English |
---|---|
Subjects | Business Administration |
Journal Section | Articles |
Authors | |
Publication Date | August 31, 2022 |
Submission Date | July 25, 2022 |
Published in Issue | Year 2022 Volume: 4 Issue: 2 |