Click-aware purchase prediction with push at the top

Eliciting user preferences from purchase records for performing purchase prediction is challenging because negative feedback is not explicitly observed, and because treating all non-purchased items equally as negative feedback is unrealistic. Therefore, in this study, we present a framework that leverages the past click records of users to compensate for the missing user-item interactions of purchase records, i.e., non-purchased items. We begin by formulating various model assumptions, each one assuming a different order of user preferences among purchased, clicked-but-not-purchased, and non-clicked items, to study the usefulness of leveraging click records. We implement the model assumptions using the Bayesian personalized ranking model, which maximizes the area under the curve for bipartite ranking. However, we argue that using click records for bipartite ranking needs a meticulously designed model because of the relative unreliableness of click records compared with that of purchase records. Therefore, we ultimately propose a novel learning-to-rank method, called P3Stop, for performing purchase prediction. The proposed model is customized to be robust to relatively unreliable click records by particularly focusing on the accuracy of top-ranked items. Experimental results on two real-world e-commerce datasets demonstrate that P3STop considerably outperforms the state-of-the-art implicit-feedback-based recommendation methods, especially for top-ranked items.Comment: For the final published journal version, see https://doi.org/10.1016/j.ins.2020.02.06

Customer purchase behavior prediction in E-commerce: a conceptual framework and research agenda

Digital retailers are experiencing an increasing number of transactions coming from their consumers online, a consequence of the convenience in buying goods via E-commerce platforms. Such interactions compose complex behavioral patterns which can be analyzed through predictive analytics to enable businesses to understand consumer needs. In this abundance of big data and possible tools to analyze them, a systematic review of the literature is missing. Therefore, this paper presents a systematic literature review of recent research dealing with customer purchase prediction in the E-commerce context. The main contributions are a novel analytical framework and a research agenda in the field. The framework reveals three main tasks in this review, namely, the prediction of customer intents, buying sessions, and purchase decisions. Those are followed by their employed predictive methodologies and are analyzed from three perspectives. Finally, the research agenda provides major existing issues for further research in the field of purchase behavior prediction online

Economic Insights from Internet Auctions: A Survey

This paper surveys recent studies of Internet auctions. Four main areas of research are summarized. First, economists have documented strategic bidding in these markets and attempted to understand why sniping, or bidding at the last second, occurs. Second, some researchers have measured distortions from asymmetric information due, for instance, to the winner's curse. Third, we explore research about the role of reputation in online auctions. Finally, we discuss what Internet auctions have to teach us about auction design.

A Comparison of Online Trust Building Factors between Potential Customers and Repeat Customers

While vendors on the Internet may have enjoyed an increase in the number of clicks on their Web sites, they have also faced disappointments in converting these clicks into purchases. Lack of trust is identified as one of the greatest barriers inhibiting Internet transactions. Thus, it is essential to understand how trust is created and how it evolves in the Electronic Commerce (EC) context throughout a customer\u27s purchase experience with an Internet store. As the first step in studying the dynamics of online trust building, this research aims to compare online trust-building factors between potential customers and repeat customers. For this purpose, we classify trust in an Internet store into potential customer trust and repeat customer trust, depending on the customer\u27s purchase experience with the store. We find that trust building differs between potential customers and repeat customers in terms of antecedents. We also compare the effects of shared antecedents on trust between potential customers and repeat customers. We find that customer satisfaction has a stronger effect on trust building for repeat customers than other antecedents. We discuss the theoretical reasons for the differences and the implications of our research

The Dynamics of Seller Reputation: Theory and Evidence from eBay

We propose a basic theoretical model of eBay's reputation mechanism, derive a series of implications and empirically test their validity. Our theoretical model features both adverse selection and moral hazard. We show that when a seller receives a negative rating for the first time his reputation decreases and so does his effort level. This implies a decline in sales and price; and an increase in the rate of arrival of subsequent negative feedback. Our model also suggests that sellers with worse records are more likely to exit (and possibly re-enter under a new identity), whereas better sellers have more to gain from buying a reputation' by building up a record of favorable feedback through purchases rather than sales. Our empirical evidence, based on a panel data set of seller feedback histories and cross-sectional data on transaction prices collected from eBay is broadly consistent with all of these predictions. An important conclusion of our results is that eBay's reputation system gives way to strategic responses from both buyers and sellers.

CONSUMERS’ WILLINGNESS TO BUY FOOD VIA THE INTERNET: A REVIEW OF THE LITTERATURE AND A MODEL FOR FUTURE RESEARCH

In the first part of the paper, existing studies on consumer propensity to buy via the Internet are reviewed in an attempt to shed light on factors explaining consumer willingness to buy food via the Internet. Following a model by Sindhav and Balazs (1999), determinants relating to medium, product, consumer, firm and environment are distinguished. In order to draw the various results together and provide a coherent framework for future research, we then propose a model which combines the Theory of Planned Behaviour and the lifestyle construct. The model can be used to analyse how beliefs affecting consumers intention to buy food via the Internet are formed and changed due to experience with such shoppingNo keywords;

Fair and Impartial Spectators in Experimental Economic Behavior

Our primary purpose in this article is to draw upon the literature of classical liberal economy to show how it informs and is informed by the results from experimental economics. Adam Smith\u27s first great book, The Theory of Moral Sentiments, serves as our chief source of insights for understanding and interpreting modern laboratory research in terms of the conventions that govern human conduct in personal exchange.~ At the same time, we wish to demonstrate how today\u27s economic experiments elucidate a reading of Adam Smith