Purchasing Power Analysis Using K-Means Algorithm
Kintan Julia Raihanum, Mulyani Karmagatri · 2023
The purpose of this study is to analyze the purchasing power of district and city communities in West Java based on their spending levels, using data from Jabar Open Data for the years 2018 to 2021. This study focuses on one of the factors that affects purchasing power, namely spending, and uses the K-means algorithm to analyze it. This algorithm helps to group data into clusters, which enables a better understanding of purchasing power based on the expenditure levels of people in districts and cities in West Java. The research was conducted using the CRISP-DM method with the K-means algorithm, which is applied to perform data mining on expenditure level data of district and city communities in West Java, listed in West Java Open Data. The data consists of 320 regions including cities and regencies in West Java Province, from 2010 to 2021, with provincial codes, regency codes, and cities. From this data, the research aims to identify regional groups that have high purchasing power, which are considered areas with good opportunities for establishing businesses. The results of this study indicate that urban areas in West Java have high purchasing power, which makes them good locations for establishing businesses. Based on this finding, the researchers plan to establish culinary businesses in urban areas in West Java, particularly in the city of Bandung.