Predicting Multi-class Customer Profiles Based on Transactions: a Case Study in Food Sales

Predicting the class of a customer profile is a key task in marketing, which enables businesses to approach the right customer with the right product at the right time through the right channel to satisfy the customer's evolving needs. However, due to costs, privacy and/or data protection, only the business' owned transactional data is typically available for constructing customer profiles. Predicting the class of customer profiles based on such data is challenging, as the data tends to be very large, heavily sparse and highly skewed. We present a new approach that is designed to efficiently and accurately handle the multi-class classification of customer profiles built using sparse and skewed transactional data. Our approach first bins the customer profiles on the basis of the number of items transacted. The discovered bins are then partitioned and prototypes within each of the discovered bins selected to build the multi-class classifier models. The results obtained from using four multi-class classifiers on real-world transactional data from the food sales domain consistently show the critical numbers of items at which the predictive performance of customer profiles can be substantially improved

The influence of national culture on the attitude towards mobile recommender systems

This is the post-print version of the final paper published in Technological Forecasting and Social Change. The published article is available from the link below. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. Copyright @ 2013 Elsevier B.V.This study aimed to identify factors that influence user attitudes towards mobile recommender systems and to examine how these factors interact with cultural values to affect attitudes towards this technology. Based on the theory of reasoned action, belief factors for mobile recommender systems are identified in three dimensions: functional, contextual, and social. Hypotheses explaining different impacts of cultural values on the factors affecting attitudes were also proposed. The research model was tested based on data collected in China, South Korea, and the United Kingdom. Findings indicate that functional and social factors have significant impacts on user attitudes towards mobile recommender systems. The relationships between belief factors and attitudes are moderated by two cultural values: collectivism and uncertainty avoidance. The theoretical and practical implications of applying theory of reasoned action and innovation diffusion theory to explain the adoption of new technologies in societies with different cultures are also discussed.National Research Foundation of Korea Grant funded by the Korean governmen

Who are Like-minded: Mining User Interest Similarity in Online Social Networks

In this paper, we mine and learn to predict how similar a pair of users' interests towards videos are, based on demographic (age, gender and location) and social (friendship, interaction and group membership) information of these users. We use the video access patterns of active users as ground truth (a form of benchmark). We adopt tag-based user profiling to establish this ground truth, and justify why it is used instead of video-based methods, or many latent topic models such as LDA and Collaborative Filtering approaches. We then show the effectiveness of the different demographic and social features, and their combinations and derivatives, in predicting user interest similarity, based on different machine-learning methods for combining multiple features. We propose a hybrid tree-encoded linear model for combining the features, and show that it out-performs other linear and treebased models. Our methods can be used to predict user interest similarity when the ground-truth is not available, e.g. for new users, or inactive users whose interests may have changed from old access data, and is useful for video recommendation. Our study is based on a rich dataset from Tencent, a popular service provider of social networks, video services, and various other services in China

User and document group approach of clustering in tagging systems

In this paper, we propose a spectral clustering approach for users and documents group modeling in order to capture the common preference and relatedness of users and documents, and to reduce the time complexity of similarity calculations. In experiments, we investigate the selection of the optimal amount of clusters. We also show a reduction of the time consuming in calculating the similarity for the recommender systems by selecting a centroid first, and then compare the inside item on behalf of each group. keywords: User Profile, Document Profile, Spectral Clustering, Group Profile, Modularity Metric

In CARSWe Trust: How Context-Aware Recommendations Affect Customers’ Trust And Other Business Performance Measures Of Recommender Systems

Most of the work on Context-Aware Recommender Systems (CARSes) has focused on demonstrating that the contextual information leads to more accurate recommendations and on developing efficient recommendation algorithms utilizing this additional contextual information. Little work has been done, however, on studying how much the contextual information affects purchasing behavior and trust of customers. In this paper, we study how including context in recommendations affects customers’ trust, sales and other crucial business-related performance measures. To do this, we performed a live controlled experiment with real customers of a commercial European online publisher. We delivered content-based recommendations and context-aware recommendations to two groups of customers and to a control group. We measured the recommendations’ accuracy and diversification, how much customers spent purchasing products during the experiment, quantity and price of their purchases and the customers’ level of trust. We aim at demonstrating that accuracy and diversification have only limited direct effect on customers’ purchasing behavior, but they affect trust which drives the customer purchasing behavior. We also want to prove that CARSes can increase both recommendations’ accuracy and diversification compared to other recommendation engines. This means that including contextual information in recommendations not only increases accuracy, as was demonstrated in previous studies, but it is crucial for improving trust which, in turn, can affect other business-related performance measures, such as company’s sales.Polytechnic of Bari, Italy; NYU Stern School of Busines