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A Correlation-Aware ML-kNN Algorithm for Customer Value Modeling in Online Shopping

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PRICAI 2018: Trends in Artificial Intelligence (PRICAI 2018)

Part of the book series: Lecture Notes in Computer Science ((LNAI,volume 11012))

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Abstract

For online retailers, it is necessary to select a relatively small set of valuable customers, so as to guide the marketing efforts and increase the profits. Drawing on prior literatures, the repeat purchase, the price sensitivity and the brand loyalty are always viewed as important labels of profitable customers. And the three labels are highly correlated. However, prior researches mostly investigated the three labels separately. Correlations between each pair of the three labels are not taken into consideration. Therefore, this work proposes a correlation-aware multi-label kNN algorithm (CAML-kNN) to model the customer value based on the three labels, as well as to capture the latent correlations among them by generating a super-set of correlated labels. Besides, we also conduct extensive experiments with the real-world data to validate the algorithm’s effectiveness in segmenting customers and profiling the customer value. With the proposed algorithm, we can help retailers generate customer segments accurately, and pave the way for successful target marketing.

This research was supported by the National Science Foundation of China (NSFC) via the grant numbers: 61773199, 71732002, as well as the Philosophy and Social Science Foundation of the Higher Education Institutions of Jiangsu Province, China (2017SJB0006).

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Authors and Affiliations

  1. School of Management, Nanjing University, Nanjing, 210093, Jiangsu, China

    Yuan Zhuang, Xiaolin Li & Yue Sun

  2. Network and Information Center, Nanjing University, Nanjing, 210093, Jiangsu, China

    Xiangdong He

Authors
  1. Yuan Zhuang
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  2. Xiaolin Li
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  3. Yue Sun
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  4. Xiangdong He
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Corresponding author

Correspondence to Xiangdong He .

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Editors and Affiliations

  1. Southeast University, Nanjing, China

    Xin Geng

  2. University of Tasmania, Hobart, Tasmania, Australia

    Byeong-Ho Kang

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Zhuang, Y., Li, X., Sun, Y., He, X. (2018). A Correlation-Aware ML-kNN Algorithm for Customer Value Modeling in Online Shopping. In: Geng, X., Kang, BH. (eds) PRICAI 2018: Trends in Artificial Intelligence. PRICAI 2018. Lecture Notes in Computer Science(), vol 11012. Springer, Cham. https://doi.org/10.1007/978-3-319-97304-3_75

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  • DOI: https://doi.org/10.1007/978-3-319-97304-3_75

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-97303-6

  • Online ISBN: 978-3-319-97304-3

  • eBook Packages: Computer ScienceComputer Science (R0)

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