Retail
Prior-Based Dual Additive Latent Dirichlet Allocation for User-Item Connected Documents
Zhang, Wei (Tsinghua University and Tsinghua National Laboratory for Information Science and Technology) | Wang, Jianyong (Tsinghua University and Tsinghua National Laboratory for Information Science and Technology)
User-item connected documents, such as customer reviews for specific items in online shopping website and user tips in location-based social networks, have become more and more prevalent recently. Inferring the topic distributions of user-item connected documents is beneficial for many applications, including document classification and summarization of users and items. While many different topic models have been proposed for modeling multiple text, most of them cannot account for the dual role of user-item connected documents (each document is related to one user and one item simultaneously) in topic distribution generation process. In this paper, we propose a novel probabilistic topic model called Prior-based Dual Additive Latent Dirichlet Allocation (PDA-LDA). It addresses the dual role of each document by associating its Dirichlet prior for topic distribution with user and item topic factors, which leads to a document-level asymmetric Dirichlet prior. In the experiments, we evaluate PDA-LDA on several real datasets and the results demonstrate that our model is effective in comparison to several other models, including held-out perplexity on modeling text and document classification application.
Recommendation Algorithms for Optimizing Hit Rate, User Satisfaction and Website Revenue
Wang, Xin (Zhejiang University) | Guo, Yunhui (Zhejiang University) | Xu, Congfu (Zhejiang University)
We generally use hit rate to measure the performance of item recommendation algorithms. In addition to hit rate, we consider another two important factors which are ignored by most previous works. First, whether users are satisfied with the recommended items. It is possible that a user has bought an item but dislikes it. Hence high hit rate does not reflect high customer satisfaction. Second, whether the website retailers are satisfied with the recommendation results. If a customer is interested in two products and wants to buy one of them, it may be better to suggest the item which can help bring more profit. Therefore, a good recommendation algorithm should not only consider improving hit rate but also consider optimizing user satisfaction and website revenue. In this paper, we propose two algorithms for the above purposes and design two modified hit rate based metrics to measure them. Experimental results on 10 real-world datasets show that our methods can not only achieve better hit rate, but improve user satisfaction and website revenue comparing with the state-of-the-art models.
Analyzing and Modeling Special Offer Campaigns in Location-Based Social Networks
Zhang, Ke (University of Pittsburgh) | Pelechrinis, Konstantinos (University of Pittsburgh) | Lappas, Theodoros (Stevens Insitute of Technology)
The proliferation of mobile handheld devices in combination with the technological advancements in mobile computing has led to a number of innovative services that make use of the location information available on such devices. Traditional yellow pages websites have now moved to mobile platforms, giving the opportunity to local businesses and potential, near-by, customers to connect. These platforms can offer an affordable advertisement channel to local businesses. One of the mechanisms offered by location-based social networks (LBSNs) allows businesses to provide special offers to their customers that connect through the platform. We collect a large time-series dataset from approximately 14 million venues on Foursquare and analyze the performance of such campaigns using randomization techniquesand (non-parametric) hypothesis testing with statistical bootstrapping. Our main finding indicates that this type of promotions are not as effective as anecdote success stories might suggest. Finally, we design classifiers by extracting three different types of features that are able to provide an educated decision on whether a special offer campaign for a local business will succeed or not both in short and long term.
From Predictive to Prescriptive Analytics
Bertsimas, Dimitris, Kallus, Nathan
In this paper, we combine ideas from machine learning (ML) and operations research and management science (OR/MS) in developing a framework, along with specific methods, for using data to prescribe decisions in OR/MS problems. In a departure from other work on data-driven optimization and reflecting our practical experience with the data available in applications of OR/MS, we consider data consisting, not only of observations of quantities with direct effect on costs/revenues, such as demand or returns, but predominantly of observations of associated auxiliary quantities. The main problem of interest is a conditional stochastic optimization problem, given imperfect observations, where the joint probability distributions that specify the problem are unknown. We demonstrate that our proposed solution methods are generally applicable to a wide range of decision problems. We prove that they are computationally tractable and asymptotically optimal under mild conditions even when data is not independent and identically distributed (iid) and even for censored observations. As an analogue to the coefficient of determination $R^2$, we develop a metric $P$ termed the coefficient of prescriptiveness to measure the prescriptive content of data and the efficacy of a policy from an operations perspective. To demonstrate the power of our approach in a real-world setting we study an inventory management problem faced by the distribution arm of an international media conglomerate, which ships an average of 1 billion units per year. We leverage both internal data and public online data harvested from IMDb, Rotten Tomatoes, and Google to prescribe operational decisions that outperform baseline measures. Specifically, the data we collect, leveraged by our methods, accounts for an 88% improvement as measured by our coefficient of prescriptiveness.
Maximally Informative Hierarchical Representations of High-Dimensional Data
Steeg, Greg Ver, Galstyan, Aram
We consider a set of probabilistic functions of some input variables as a representation of the inputs. We present bounds on how informative a representation is about input data. We extend these bounds to hierarchical representations so that we can quantify the contribution of each layer towards capturing the information in the original data. The special form of these bounds leads to a simple, bottom-up optimization procedure to construct hierarchical representations that are also maximally informative about the data. This optimization has linear computational complexity and constant sample complexity in the number of variables. These results establish a new approach to unsupervised learning of deep representations that is both principled and practical. We demonstrate the usefulness of the approach on both synthetic and real-world data.
26 Inference and Knowledge in Language Comprehension
To use language one must be able to make inferences about the information which language conveys. This is apparent in many ways. For one thing, many of the processes which we typically consider "linguistic" require inference making. For example, structural disambiguation: (1) Waiter, I would like spaghetti with meat sauce and wine. You would not expect to be served a bowl of spaghetti floating in meat sauce and wine. That is, you would expect the meal represented by structure (2) rather than that represented by (3).
Ordering Effects and Belief Adjustment in the Use of Comparison Shopping Agents
Hajaj, Chen (Bar-Ilan University) | Hazon, Noam (Ariel University) | Sarne, David (Bar-Ilan University)
The popularity of online shopping has contributed to the development of comparison shopping agents (CSAs) aiming to facilitate buyers' ability to compare prices of online stores for any desired product. Furthermore, the plethora of CSAs in today's markets enables buyers to query more than a single CSA when shopping, thus expanding even further the list of sellers whose prices they obtain. This potentially decreases the chance of a purchase based on the prices outputted as a result of any single query, and consequently decreases each CSAs' expected revenue per-query. Obviously, a CSA can improve its competence in such settings by acquiring more sellers' prices, potentially resulting in a more attractive ``best price''. In this paper we suggest a complementary approach that improves the attractiveness of a CSA by presenting the prices to the user in a specific intelligent manner, which is based on known cognitive-biases.The advantage of this approach is its ability to affect the buyer's tendency to terminate her search for a better price, hence avoid querying further CSAs, without having the CSA spend any of its resources on finding better prices to present.The effectiveness of our method is demonstrated using real data, collected from four CSAs for five products. Our experiments with people confirm that the suggested method effectively influence people in a way that is highly advantageous to the CSA.
Effective Bayesian Modeling of Groups of Related Count Time Series
Time series of counts arise in a variety of forecasting applications, for which traditional models are generally inappropriate. This paper introduces a hierarchical Bayesian formulation applicable to count time series that can easily account for explanatory variables and share statistical strength across groups of related time series. We derive an efficient approximate inference technique, and illustrate its performance on a number of datasets from supply chain planning.
Re-Ranking Recommendations Based on Predicted Short-Term Interests - A Protocol and First Experiment
Jannach, Dietmar (TU Dortmund University) | Lerche, Lukas (TU Dortmund University) | Gdaniec, Matthรคus (TU Dortmund University)
The recommendation of additional shopping items that are potentially interesting for the customer has become a standard feature of modern online stores. In academia, research on recommender systems (RS) is mostly centered around approaches that rely on explicit item ratings and long-term user profiles. In practical environments, however, such rating information is often very sparse and for a large fraction of the users very little is known about their preferences. Furthermore, in particular when the shop offers products from a variety of categories, the decision of what should be recommended can strongly depend on the user's current short-term interests and the navigational context. In this paper, we report the results of an initial experimental analysis evaluating the predictive accuracy of different contextualized and non-contextualized recommendation strategies and discuss the question of appropriate experimental designs for such types of evaluations. To that purpose, we introduce a parameterizable protocol that supports session-specific accuracy measurements. Our analysis, which was based on log data obtained from a large online retailer for clothing and lifestyle products, shows that even a comparably simple contextual post-processing approach based on product features can leverage short-term user interests to increase the accuracy of the recommendations.
Search More, Disclose Less
Hajaj, Chen (Bar-Ilan University) | Hazon, Noam (Bar-Ilan University) | Sarne, David (Bar-Ilan University) | Elmalech, Avshalom (Bar-Ilan University)
The blooming of comparison shopping agents (CSAs) in recent years enables buyers in today's markets to query more than a single CSA while shopping, thus substantially expanding the list of sellers whose prices they obtain. From the individual CSA point of view, however, the multi-CSAs querying is definitely non-favorable as most of today's CSAs benefit depends on payments they receive from sellers upon transferring buyers to their websites (and making a purchase). The most straightforward way for the CSA to improve its competence is through spending more resources on getting more sellers' prices, potentially resulting in a more attractive ``best price''. In this paper we suggest a complementary approach that improves the attractiveness of the best price returned to the buyer without having to extend the CSAs' price database. This approach, which we term ``selective price disclosure'' relies on removing some of the prices known to the CSA from the list of results returned to the buyer. The advantage of this approach is in the ability to affect the buyer's beliefs regarding the probability of obtaining more attractive prices if querying additional CSAs. The paper presents two methods for choosing the subset of prices to be presented to a fully-rational buyer, attempting to overcome the computational complexity associated with evaluating all possible subsets. The effectiveness and efficiency of the methods are demonstrated using real data, collected from five CSAs for four products. Furthermore, since people are known to have an inherently bounded rationality, the two methods are also evaluated with human buyers, demonstrating that selective price-disclosing can be highly effective with people, however the subset of prices that needs to be used should be extracted in a different (and more simplistic) manner.