A Recommendation Model for Selling Rules in the Telecom Retail Industry
Abstract
:1. Introduction
2. Related Work
2.1. Data Mining in the Telecommunications Industry
2.2. K-Means Clustering
2.3. C5.0 Decision Tree Classification
3. Methodology
3.1. Research Framework
3.2. Data Acquisition and Preprocessing
3.3. Cluster Analysis
- Step 1. The number of clusters is set at K;
- Step 2. K data points are selected as the cluster centers;
- Step 3. The distance between each data point and each cluster center is calculated so as to classify the data point into its closest cluster;
- Step 4. In each cluster, a new center is calculated using all data points belonging in the respective cluster;
- Step 5. Step 3 and Step 4 are repeated until clustering results no longer change or the maximum number of iterations is reached.
3.4. Rule Analysis
4. Experimental Results and Discussion
4.1. Case Company and Data Preparation
4.2. Dataset and Preprocessing
4.3. Experimental Results
4.4. Discussion
5. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Telecom Carrier F | Telecom Carrier W | Telecom Carrier T | Total | |
---|---|---|---|---|
Number of data | 6900 | 1869 | 1547 | 10,316 |
Ratio of data | 66.89% | 18.12% | 14.99% | 100% |
Cluster | Number of Rule | Number of Data | Ratio of Data |
---|---|---|---|
Cluster 1 | 3 | 3146 | 30.5% |
Cluster 2 | 5 | 1691 | 16.39% |
Cluster 3 | 1 | 2493 | 24.17% |
Cluster 4 | 8 | 1977 | 19.16% |
Cluster 5 | 3 | 1009 | 9.78% |
Number | Rules for the Category of Selling Recommendation | Accuracy |
---|---|---|
Rule 1.1 | IF commodity cost < TWD 5001, and gross profit < TWD 5001, THEN selling recommendation is Cluster 1 | 100% |
Rule 1.2 | IF commodity cost between TWD 5001 and TWD 10,000, and gross profit < TWD 5001, THEN selling recommendation is Cluster 1 | 99% |
Rule 1.3 | IF commodity cost < TWD 5001, and project commission between TWD 3001 and TWD 6000, THEN selling recommendation is Cluster 1 | 97% |
Rule 2.1 | IF commodity cost between TWD 10,001 and TWD 15,001, and gross profit < TWD 5001, THEN selling recommendation is Cluster 2 | 100% |
Rule 2.2 | IF commodity cost between TWD 10,001 and TWD 15,001, and commodity project price between TWD 4001 and TWD 8000, THEN selling recommendation is Cluster 2 | 100% |
Rule 2.3 | IF commodity cost between TWD 10,001 and TWD 15,001, and commodity project price between TWD 8001 and TWD 12,000, THEN selling recommendation is Cluster 2 | 100% |
Rule 2.4 | IF commodity cost between TWD 10,001 and TWD 15,001, and commodity project price > TWD 12,000, THEN selling recommendation is Cluster 2 | 100% |
Rule 2.5 | IF commodity cost between TWD 10,001 and TWD 15,001, and gross profit between TWD 10,001 and TWD 15,001, THEN selling recommendation is Cluster 2 | 100% |
Rule 3.1 | IF commodity cost > TWD 15,001, and commodity project price > TWD 12,001, THEN selling recommendation is Cluster 3 | 100% |
Rule 4.1 | IF gross profit between TWD 5001 and TWD 10,000, and commodity project price < TWD 4001, THEN selling recommendation is Cluster 4 | 100% |
Rule 4.2 | IF commodity cost between TWD 5001 and TWD 10,000, and gross profit between TWD 5001 and TWD 10,000, THEN selling recommendation is Cluster 4 | 100% |
Rule 4.3 | IF commodity cost < TWD 5001, and gross profit between TWD 10,001 and TWD 15,000, THEN selling recommendation is Cluster 4 | 99% |
Rule 4.4 | IF commodity cost < TWD 5001, and gross profit between TWD 5001 and TWD 10,000, THEN selling recommendation is Cluster 4 | 96% |
Rule 4.5 | IF commodity cost between TWD 5001 and TWD 10,000, and gross profit between TWD 10,001 and TWD 15,000, THEN selling recommendation is Cluster 4 | 97% |
Rule 4.6 | IF project tariffs between TWD 401 and TWD 600, and gross profit between TWD 5001 and TWD 10,000, and commodity project price between TWD 4001 and TWD 8000, THEN selling recommendation is Cluster 4 | 100% |
Rule 4.7 | IF commodity cost < TWD 5001, and gross profit > TWD 15,000, THEN selling recommendation is Cluster 4 | 89% |
Rule 4.8 | IF commodity cost between TWD 5001 and TWD 10,000, and gross profit > TWD 15,000, THEN selling recommendation is Cluster 4 | 100% |
Rule 5.1 | IF commodity cost > TWD 15,001, and commodity project price between TWD 8001 and TWD 12,000, THEN selling recommendation is Cluster 5 | 100% |
Rule 5.2 | IF commodity cost > TWD 15,001, and commodity project price between TWD 4001 and TWD 8000, THEN selling recommendation is Cluster 5 | 100% |
Rule 5.3 | IF commodity cost > TWD 15,001, and commodity project price < TWD 4001, THEN selling recommendation is Cluster 5 | 100% |
Item | Cluster 1 | Cluster 2 | Cluster 3 | Cluster 4 | Cluster 5 |
---|---|---|---|---|---|
Commodity cost | Medium-low | Medium-high | High | Medium-low | High |
Commodity project price | Low | Medium-low | High | Low | Medium-high |
Gross profit | Low | Low | Low | Low | Low |
Project tariffs | Medium-low | Medium-high | High | Medium-high | High |
Project commission | Low | Medium-low | Medium | Medium | Medium |
Advance payments | Low | Low | Low | Low | Low |
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Ou, T.-Y.; Tsai, W.-L.; Lee, Y.-C.; Chang, T.-H.; Lee, S.-H.; Huang, F.-F. A Recommendation Model for Selling Rules in the Telecom Retail Industry. Axioms 2022, 11, 265. https://doi.org/10.3390/axioms11060265
Ou T-Y, Tsai W-L, Lee Y-C, Chang T-H, Lee S-H, Huang F-F. A Recommendation Model for Selling Rules in the Telecom Retail Industry. Axioms. 2022; 11(6):265. https://doi.org/10.3390/axioms11060265
Chicago/Turabian StyleOu, Tsung-Ying, Wen-Lung Tsai, Yi-Chen Lee, Tien-Hsiang Chang, Shih-Hsiung Lee, and Fen-Fen Huang. 2022. "A Recommendation Model for Selling Rules in the Telecom Retail Industry" Axioms 11, no. 6: 265. https://doi.org/10.3390/axioms11060265
APA StyleOu, T. -Y., Tsai, W. -L., Lee, Y. -C., Chang, T. -H., Lee, S. -H., & Huang, F. -F. (2022). A Recommendation Model for Selling Rules in the Telecom Retail Industry. Axioms, 11(6), 265. https://doi.org/10.3390/axioms11060265