Final Project Presentation · Final Project Presentation Matthew Chun, Kay Hiratsuka, Jiarun Zhang...
Transcript of Final Project Presentation · Final Project Presentation Matthew Chun, Kay Hiratsuka, Jiarun Zhang...
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Final Project PresentationMatthew Chun, Kay Hiratsuka, Jiarun Zhang
Special thanks to Jacob LaRiviere
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Ratio of Stock Codes
The revenue of the top four StockCodes counts for 6.60% of the total revenue.
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Ratio of Customers
The revenue of the top four Customer ID’s count for 11.26% of the total revenue.
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Spurt or Smooth Buying Behavior
Customers tend to purchase more at the end of the year near the holidays.
Until August, customers tend to have smooth buying behaviors.
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Spurt or Smooth Buying Behavior Cont.
ACF captures the time dependence effect on revenue over time. From this graph, we can see how much customers spend today do not have a huge impact on how much the customers will spend tomorrow.
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Customers who Buy the Top 4 Goods
Total Number of Distinct Customers that bought the top 4 goods: 1796
Customers who buy the top 4 goods buy a lot of other products and spend a significant amount on them.
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Product’s Name Elasticity
*PAPER CRAFT , LITTLE BIRDIE (23843)
*N/A
REGENCY CAKESTAND 3 TIE (22423)
1.23517
WHITE HANGING HEART T-LIGHT HOLDER (85123A)
2.70215
JUMBO BAG RED RETROSPOT (85099B)
2.6224
Demand Elasticities for the Top 4 Goods
*PAPER CRAFT , LITTLE BIRDIE(23843) had only one data point. Therefore, we could not calculate the elasticity.
Table shows top 4 goods in decreasing revenue
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Products Lerner’s Index
PAPER CRAFT , LITTLE BIRDIE (23843)
N/A
REGENCY CAKEST AND 3 TIE (22423)
0.8096
WHITE HANGING HEART T-LIGHT HOLDER (85123A)
0.3701
JUMBO BAG RED RETROSPOT (85099B)
0.3813
Value Based Pricing for the Top 4 Goods
● Table shows the top 4 goods ordered by decreasing revenue
● From largest to smallest markup is 22423, 85099B, 85123A
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Customer Behavior
Large spending customers buy many more products than low spending customers.
There is a large difference in spending from top and bottom customers.
Leverage big buyers to sell different goods!
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Customer Behavior Cont.
Target Dutch, Irish, and Australian Customers
The average hours between purchases for the top 4 customers is significantly less than for the rest of the customers (67.82 hours).
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Summary
1. Impose value-based pricing on the first 3 quarters where the sales is smooth to increase the revenue
2. Prioritize evaluating pricing in Dutch, Irish, and Australian markets first as they are the big spenders on the top 4 goods
3. Leverage big buyers by selling them other goods
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Appendix and Extra Analysis Materials
1. analysis.py/analysis.html - create charts and analysis for questions 3 and 52. AvgFrequency.py/AvgFrequency.html - calculate average purchase frequencies3. FinalProjectElasticity.Rmd/FinalProjectElasticity.html - calculate elasticity for
question 44. part2-ts.R - creates the ACF plot5. Part2.xlsx - analysis on question 1, 2, and 5 and creates more graphs