Integrating data mining technique and AHP in market analysis to propose new product development in real estate

Abstract

New product development in real estate industry is a challenging process since it is related to long term concept and high cost. A newly proposed product development should meet customer need and their preferences which appropriate with customer buying power and company value. This research use data mining for profiling customer transaction and Analytic Hierarchy Process (AHP) method for product selection in new product development. This research utilizes Weka as data mining open source software to profiling data customers. The analysis correlated product preferences and profiling demography such as city, age, gender and occupation. Demography profiles gives description buying power and product preferences. The products proposed are based on customer profiles and rank of the product by AHP method. The product with the highest score will be proposed as new product development. Case studies of this research are real estate projects in Serang, Makassar, and Balikpapan. Makassar and Balikpapan are the project that already gained success and Serang is new project which new products development will be proposed to launch. Based on profiling and product preference of customer in Balikpapan, Makassar, and prospectus of Serang markets, new products development that will be proposed are house type of 120/200 m2 with price around Rp1.300.000.000 and house type of 71/120 m2 with price around Rp800.000.000. The markets of Serang and Balikpapan have similarities in profiles as urban city so the new products development will adopt the succeed story of Balikpapan project.