Research On Price Strategy Of Household Appliance Chain A Enterprise Based On Data Mining

In the electronic home appliance retail industry of china,consumer always has such image of the price is not the lowest one,so the bargaining happened regularly during the deal.In order to keep the margin level and do the business,the electric home appliance retail company must has a system to make up the label price and transaction price on commodity.This system is the most important managerial tool in the company and it could indicate the operation quality.This paper is based on such system and uses data mining model to investigate the efficiency and relations of every price cost under different dimensions for conducting the future price cost strategy.The fundamental thinking of this paper is from writer's physical working experience in the chosen company,and assisted by plenty of literature documents.The paper chosen NJ&AH 5 years business data as samples and made up to 3 dimensions according to OLS model needs.SPSS19.0 and Statistic10.0 were used for data analysis and verify the assumptions.Based on the theory and the methodology,this paper achieved significant results.First,verified the direct reduction cost does not have the significant positive relationship with sales revenue.This indicated when the direct reduction for all products happened,it can't attract customer anymore.Second,verified the regions difference of pricing cost.For the more developed region,facing the adult market and rational customer,developed region has more pressure on the cost efficiency than lower developed region.But in some other new style pricing cost,developed region is better than lower developed region.Taken CRM for instance,the members in NJ market is more valuable than AH market.Third,verified the pricing cost difference in store categories.As the one STI in sample company,no matter the bigger or medium store,they all need to push business and achieve the budget,based on that,the mediums must conquer the physical difficulties,no fancy store,no fashion experience...compare to the bigger ones.This will push them to think more about pricing cost to drive business and earn their compensation,which also verified by the data.For other dimension verification the paper also achieved the results.This paper combined the econometrics theory and physical operation experience,using the real data and from macro angle to investigate the sample company's business running with meaningful results achieved,which could be conduct the sample company's future operation strategy and may provide a possible analysis way for the industry.