Book Image

The Art of Data-Driven Business

By : Alan Bernardo Palacio
Book Image

The Art of Data-Driven Business

By: Alan Bernardo Palacio

Overview of this book

One of the most valuable contributions of data science is toward helping businesses make the right decisions. Understanding this complicated confluence of two disparate worlds, as well as a fiercely competitive market, calls for all the guidance you can get. The Art of Data-Driven Business is your invaluable guide to gaining a business-driven perspective, as well as leveraging the power of machine learning (ML) to guide decision-making in your business. This book provides a common ground of discussion for several profiles within a company. You’ll begin by looking at how to use Python and its many libraries for machine learning. Experienced data scientists may want to skip this short introduction, but you’ll soon get to the meat of the book and explore the many and varied ways ML with Python can be applied to the domain of business decisions through real-world business problems that you can tackle by yourself. As you advance, you’ll gain practical insights into the value that ML can provide to your business, as well as the technical ability to apply a wide variety of tried-and-tested ML methods. By the end of this Python book, you’ll have learned the value of basing your business decisions on data-driven methodologies and have developed the Python skills needed to apply what you’ve learned in the real world.
Table of Contents (17 chapters)
Part 1: Data Analytics and Forecasting with Python
Part 2: Market and Customer Insights
Part 3: Operation and Pricing Optimization

Understanding conjoint analysis

Conjoint analysis is a research-based statistical method used in market research to determine how people evaluate the different attributes (characteristics, functions, and benefits) that make up a single product or service.

Conjoint analysis has its roots in mathematical psychology, the goal of which is to determine which combination of a limited number of attributes has the greatest impact on respondents’ choices and decisions. Respondents are presented with a controlled set of potential products or services, and by analyzing how to choose from those products, an implicit assessment of each component of the product or service is made. You can decide. You can use these implicit ratings (utilities or fractions) to create market models that estimate market share, sales, and even the profitability of new designs.

There are different types of conjoint studies that may be designed:

  • Ranking-based conjoint
  • Rating-based conjoint
  • ...