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University of Fribourg Informatics Department Seminar in Electronic Business Recommender systems and content-based filtering Seminar Michael Dejen & Hamed Sekandary Adviser Prof. Andreas Meier Assistant Daniel Fasel Date May 14, 2008

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University of Fribourg

Informatics Department

Seminar in Electronic Business

Recommender systems and content-based filtering

Seminar

Michael Dejen

&

Hamed Sekandary

Adviser

Prof. Andreas Meier

Assistant

Daniel Fasel

Date

May 14, 2008

2

Table of contents

1 Introduction .............................................................................................. 4

2 Content filtering methods .......................................................................... 5

2.1 Content-based filtering ................................................................................................. 5

2.2 Collaborative filtering .................................................................................................. 7

2.3 Hybrid recommender systems ...................................................................................... 8

3 Personalization ........................................................................................11

3.1 Gathering personal information ................................................................................. 11

3.2 Degrees of personalization ......................................................................................... 12

3.3 Explicit feedback VS Implicit feedback ..................................................................... 16

4 Privacy concerns .....................................................................................18

4.1 Main aspects ............................................................................................................... 18

4.2 Privacy policies .......................................................................................................... 19

4.3 Platform for Privacy Preferences ............................................................................... 21

5 Marketing perspectives ............................................................................23

5.1 Contributions to E-Commerce ................................................................................... 23

5.2 Business Models for cost recovery ............................................................................. 24

5.3 Recommendation delivery .......................................................................................... 24

6 Conclusion ...............................................................................................26

3

Table of figures

Figure 1 : The PRES architecture ............................................................................................... 6

Figure 2 : The Fab hybrid recommender system architecture .................................................. 10

Figure 3 : Recommender websites and applications classification .......................................... 13

Figure 4 : Amazon Delivers E-mail Subscriptions ................................................................... 14

Figure 5 : Movielens – Movie recommender system ............................................................... 15

Figure 6 : An example of Reel.com’s “Movie Match” recommendations ............................... 15

Figure 7 : Amazon's "Customers Who Bought" recommender ................................................ 16

4

1

Introduction

« Recommender systems support users by identifying interesting products and

services in situations where the number and complexity of offers outstrips the user’s

capability to survey them and reach a decision. » (Alexander Felfernig 2007)

Given the overload of information on the internet today, users are having more and

more difficulties to find the exact information they need and are asking for

personalization technologies. Recommender systems can help them in their

searching process by offering recommendations based on their interests, tastes or

previous actions.

Nowadays, recommender systems are used in almost every category of e-

commerce, going from books recommendations to personalized financial services.

Indeed most of largest e-commerce websites (e.g. Amazon.com) are using

recommender systems to help their customers find what they need and in that way

enhance their sales and obtain customer satisfaction and loyalty.

It can also be noticed that there are more and more websites requiring user

contributions. The reason for that collaboration asked from the users’ side is because

recommender systems are fueled with user contributions and it is through those

contributions that all recommendations will be generated.

The aim of this seminar is, initially, to understand how a recommender system works,

what the different content filtering methods are and which advantages and

disadvantages do they have. Secondly, the aspect of personalization is treated to

see how personal information about a user is gathered by the recommender system

and which are the different degrees of personalization. Then privacy concerns and

are discussed in order to see what are the privacy risks recommender system users

can be confronted with and what is done to avoid those risks. Finally, marketing

perspectives have been studied to reveal which benefits the use of a recommender

system can bring to e-commerce websites.

5

2

Content filtering methods

2.1 Content-based filtering

This type of filtering is made using the user’s profile containing the user’s preferences

and tastes collected explicitly by the user or deduced from his past ratings or

purchases. The user’s profile is generated through features of items he has rated or

purchased in the past and it’s based on these features that the recommendations will

be done. This means that the content presented to the user will be in agreement with

his preferences and the items he has liked or bought in the past.

Indeed, the recommended items will be selected based on the correlation between

the content of the item and the user’s preferences.

To understand better how this kind of recommender system works, we can take the

example of the pure content-based recommender system PRES (Personalized

Recommender System) which makes recommendations for a website that contains a

collection of textual documents about do it yourself home improvements. PRES

makes recommendations by comparing a user profile with the content of each

document in the collection.

The content of each document is represented by a set of terms which are extracted

from that document.

On the other hand the user’s profile is fed with the terms of documents the user has

found interesting and to determine which documents have interested a user, explicit

(i.e. rating of the document) or the or implicit feedback (inferred by observing the

user’s actions) are used.

To evaluate the importance of those extracted terms the term frequency/inverse

document frequency (TF-IDF) measure is used. The latter will give a weight to each

keyword using the formula bellow:

6

𝑤𝑖 = 𝑡𝑓𝑖 ∗ 𝑙𝑜𝑔 𝑛

𝑑𝑓𝑖

Where wi is the weight of the term ti, tfi is the number of occurrence of term ti in a

document D, n the total number of documents in the collection of documents and dfi

the number of documents in which term ti appears at least once.

The TF-IDF makes two assumptions based on the characteristics of text documents:

1. The more times a term appears in a document, the more relevant it is to the

topic of the document

2. The more times a term occurs in all documents in the collection, the more

poorly it discriminates between documents

Using these techniques each document will be represented by keywords which best

describe its content and in this way accurate recommendations can be made by the

recommender system.

Figures 1, illustrates the PRES architecture and gives an overview of how it works.

Figure 1 : The PRES architecture (Robin van Meteren 2000)

In this figure, we can see that the user profile is learned from feedback given by the

user. The user profile is compared with the document in the collection by the

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recommender system. And the documents which best suit the user’s interests appear

as hyperlink on the web page. (Robin van Meteren 2000)

But the problem with content-based filtering is that it has several shortcomings

(Marko 1997; Gediminas Adomavicius 2005):

Recommendation diversity limitation: the diversity of the content presented to

the user will be limited because the recommendations depend of the user’s

past actions. Indeed the recommender system will only recommend items for

which the user has shown interest before. That is a really annoying problem

for new users who have empty or restricted profiles because the

recommender system will not be able to make any recommendations for them

and it will take time until those become really accurate and corresponding to

the user’s interests.

Eliciting user feedback: the process of giving a feedback or rating for an item

is somewhat annoying for the user because it requires an investment in time

an effort. But those evaluations are essential for the performance of the

recommender system because all the future recommendations will be based

on them given the fact that the content-based filtering is made through the

user’s profile which is partly filled in with the characteristics of items rated in

the past.

Limited content analysis: each item is described by a set of terms directly

extracted from it. That will work correctly with text-based items but not with

multimedia data such as images or videos. The only solutions for that would

be the explicit feature specification of each item but this too restrictive to do in

real life. In addition to that, even with text-based items, there can be a

problem sometimes. Indeed, if two items are described by the same terms,

which can happen for example with two news articles talking about the same

event, the recommender system will not be able to make a distinction

between them even if they differ regarding the quality of the redaction.

2.2 Collaborative filtering

This type of filtering method doesn’t depend of the user’s profile for making

recommendations but on the experiences of a community of users who have the

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same tastes as the user looking for the product or service. To define that community,

collaborative filtering algorithms such as the “nearest neighbor” are used which

selects a set of users with whose past ratings there is the strongest correlation.

With this kind of filtering, there is no analysis of the items required by the system; the

only specification needed is an identifier for each item. That means that, unlike the

content-based filtering, the features of an item aren’t taken into consideration at all.

The collaborative filtering method overcomes the weaknesses of content-based

filtering. Indeed, the diversity of the content presented to the user isn’t limited any

more since the recommendations are made from the feedbacks left by a bunch of

“similar” users and this also drops the importance of the quantity of own ratings the

user has to give.

But this method isn’t perfect and also has its shortcomings (Marko 1997):

No recommendations for new items: any new item introduced in the database

will not be recommended to the users until it has been rated by them and

since there are no recommendations there can be a considerable period of

time until that item is presented to the customers by the system.

Fewer recommendations for users with unusual tastes: since the

recommendations are made from the similarities between users, the one who

has non common tastes will get less or no recommendations at all.

No matching between users who haven’t rated the same item: since each item

is only referred by an identifier, to be part of the same community two users

have to rate the same item and in the same way. For example if a user rated

positively the flight ticket search engine Expedia.com and another user rated

positively the eBookers.com one, these two users will not necessarily be

nearest neighbors.

2.3 Hybrid recommender systems

Since both content-based and collaborative filtering methods have weak but also

strong points, hybrid recommender systems have been introduced to build the

advantages of both methods into one system.

9

The authors of (Gediminas Adomavicius 2005) state that there are four different ways

to combine collaborative and content-based methods into a hybrid recommender

system :

1. Implementing collaborative and content-based methods separately and

combining their predictions

2. Incorporation some content-based characteristics into a collaborative

approach

3. Incorporating some collaborative characteristics into a content-based

approach

4. Constructing a general unifying model that incorporates both content-based

and collaborative characteristics which is the case of the hybrid recommender

system presented bellow.

To illustrate this kind of recommender systems, we will take the case of “Fab” which

is a hybrid recommender system for the Web developed in the University of Stanford.

Figure 2.1 represents the “Fab” recommender architecture. It is composed of three

main components (Marko 1997):

Collection agents: their task is to find pages for specific topics depending of

the interests of a community of users and maintain a profile generated through

words contained in Web pages which have been rated. This profile will be

used to collect the adapted pages as the interests of the community of users

will change over time. It is in fact, the best representation of a group of users’

interests.

Selection agents: their task is to find pages for a specific user and also to

maintain a profile representing the user’s interests.

Central router: its task is to forward pages found from the collection agents to

the users whose profile is matching.

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Figure 2 : The Fab hybrid recommender system architecture (Marko 1997)

Once the recommendations have been made to the users, the latter will have to

provide a rating for each recommended page. These feedbacks will be used to

update the user’s selection agent’s profile and will be submitted back to the collection

agents. In addition to that, each highly evaluated page will be transmitted to the

user’s nearest neighbors which have, as seen before, the same interests.

Through this example, we can clearly see the advantages of an hybrid recommender

system (Marko 1997):

Thanks to collaborative filtering, the feedbacks of other users can be used to

make recommendations.

With content-based filtering, new items with no previous ratings by other users

can also be recommended.

Collaborative recommendations are now possible between users who haven’t

rated exactly the same item as long as they have rated similar items. This is

due to the fact that the profiles take into consideration the features of items.

Recommendations can also be made for users who have unusual tastes since

the profiles are made from the content of items.

With the selection agents, items that are too similar will not be recommended

twice to the user because these agents will filter them out.

11

3

Personalization

3.1 Gathering personal information

The goal of personalization is to recommend a product or service that best suits the

customer’s needs. For that to be possible, the recommender system has to collect

personal information about the users in order to know their preferences. That can be

done by giving them the opportunity to rate items they have seen or used in the past

e.g. the recommender system can ask a user to select a list of movies he has already

watched and give a rating for each of them or ask him which meals he likes the most

etc.. But the questions asked or the items presented to the new user have to be

ideally defined so that with the given responses the system can extract useful

personal information about each user. This means that asking a user if he or she

does like chocolate will gather absolutely no useful information to the system for

personalization purpose simply because most people like chocolate and that

information will not differentiate that user form another one.

The authors of (Al Mamunur 2002) have defined several strategies for the selection

of the items to present to a new user in order to best encircle his preferences :

Random strategies: the items are selected randomly from a database. Among

that random selection the items are sorted by two criteria:

o Popularity: the items will be presented from the most popular to the

least one based on the ratings of other users. In this way, the

probability that a user knows the presented items and is thus able to

them is higher. The main problem of this strategy is that most people

like popular items e.g. best-seller novels and that will only provide low

value information about a particular user to the system.

o Pure entropy: to have a diverse selection, the items will be selected by

their level of entropy sorted in descending. An item with high entropy is

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for example a movie that has an equal number of good and bad ratings.

The problem in this case, is that the selection will probably contain

many items unknown by the user.

Personalized strategies: to simplify the signing up process and demand less

effort from new users, there are personalized strategies like item-to-item

personalized strategy. Instead of presenting the new user a long list of items

he potentially may know and ask him to rate them in order to let the

recommender system create him a profile for further recommendations, one

single rating (at least) will be sufficient for the system. This strategy is based

on similarity between items, so once the system gets the rate of the user

about one item it will compute other items which have a relation with the

initially rated item and that this user may also have seen. In this way the user

will be presented a list of items he has a high probability to know. The problem

with this strategy is that knowing an item e.g. having read a book means liking

it in many cases. So the information gathered will be of less value.

3.2 Degrees of personalization

Recommendations generated by a recommender system may have several degrees

of personalization (J. Ben Schafer 1999; J. Ben Schafer 2001):

Non-personalized: the same recommendations are made to all users. In this

case the preferences of the users are not taken into consideration at all. Many

e-commerce recommendations do this e.g. presenting the top sellers or

editor’s choice to the customers.

Ephemeral personalization: recommendations are generated in response to

the customer’s navigation and selection on a web site. This kind of

personalization is often based on item-to-item correlation (as seen in section

3.1) or attribute-based recommendation. The latter generates

recommendations based on the features on an item e.g. if a user searches for

the movie “Indiana Jones”, the system will recommend other adventure

movies like “Robin Hood” or “Jurassic Park”. In addition, ephemeral

personalization will not remember the user’s interests from one visit on the

website to the next one.

13

Persistent personalization: recommendations will differ for each user. Here

attribute-based recommendation, item-to-item correlation or user-to-user

correlation will be employed but in this case the user’s interests will be saved

by the system for further visits (thus a user profile will be created). User-to-

user correlation also called “collaborative filtering” (seen in section 2.2) will

produce recommendation based on the similarities between users who have

purchased products or services from a given website.

In Figure 3.1 a few recommendation websites and applications are classified in a two

dimensions graph.

Figure 3 : Recommender websites and applications classification (J. Ben Schafer 1999)

The horizontal axis represents the automation level. A recommendation can be

manual or automatic or both. Manual means that explicit effort by the user is

required. The vertical axis represents the persistence level. A recommendation can

be ephemeral or persistent.

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On this figure, we can see the “Amazon.com Delivers” is a manual and persistent

application. This feature is an email subscriptions feature that let the user choose

among a list of categories as shown in Figure 4 bellow, in order to be notified by

email of the latest recommendations concerning that category of product. It is manual

because the user has to specify explicitly in which categories he is interested and

persistent because the selected categories will be saved for each user.

Figure 4 : Amazon Delivers E-mail Subscriptions (Amazon.com)

We can use Movielens as an example for the Persistent – Auto zone in the diagram

Figure 2 above. MovieLens is a research site run by GroupLens Research at the

University of Minnesota which is a movie recommender where we indicate some

number of our preferred movies at least 15 to be exact and the website generates

movie recommendations using the technology collaborative filtering. It is automatic

because the recommendations are generated automatically and it is persistent

because it recalls the customer each time he connects, to retrieve his profiles which

allow it to give him a movie recommendations that are somehow close to what he

desires.

15

Figure 5 : Movielens – Movie recommender system (Movielens.org)

On the other hand, we can take the example of Reel.com’s “Movie Match” is

automatic and ephemeral. This feature provides information about movies and also

recommendations classified in two groups: “close matches” and “creative matches”.

Under each match, there is a short explanation on how the recommended movie is

similar the initial one.

Figure 6 : An example of Reel.com’s “Movie Match” recommendations (Reel.com)

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It is automatic because the movie recommendations are made without any effort of

the user and ephemeral because previous searches and navigations aren’t saved by

the system.

We can use again as an example the Amazon’s “Customers who Bought” theory for

the zone Ephemeral – Auto in the Recommender websites and applications

classification diagram Figure 3 above. “Customer who Bought” proposal from

Amazon is automatic because there is no human (client) interference; it’s the system

which recommends the other related products (books) which were bought by

previous clients who bought the product which we are about to buy. It is Ephemeral

because once we quit the page and return back after a while the system do not recall

us.

Figure 7 : Amazon's "Customers Who Bought" recommender (Amazon.com)

3.3 Explicit feedback VS Implicit feedback

The information saved in a user’s profile can be collected through either explicit or

implicit feedback. The former is the most widely used in today’s recommender

systems and the most common example for an explicit feedback is asking a user to

give a rating for item he has purchased on a sliding scale. But this kind of feedback’s

main disadvantages is that the user has to provide an effort and give ratings on items

he has purchased or used (e.g. a read article) to make the recommender system

work.

On the other side, implicit feedback is based on observations of a user’s behavior in

order to extract conclusions about his preferences and tastes and in that way

automate the rating process. The observable behaviors can be the following:

navigation on a page, mouse clicks, period of time spent on a page, bookmarking of

a page, following a hyperlink, cutting and pasting potion of text etc. All these

17

behaviors indicate different degrees of interest for a particular product or service.

Thus a user bookmarking a page which contains an article about sport cars will

indicate a strong interest of that user for that subject. But on the other hand, following

a hyperlink isn’t an important enough action to make conclusions about a user’s

preferences. In order to measure the relation between implicit and explicit feedback,

(Mark 2001) have implemented a recommender system that records the entire user’s

actions on a web browser and also asks for explicit rating of each page of the

website he visits. Through that experimental web interface, several observations

have been made like:

When a user spends a long time on a single webpage he also gives a good

explicit rating for that webpage. So this means that the period of time spent on

a page is a good interest indicator.

Mouse clicks aren’t a good interest indicator because the users who have

made a lot of clicks on a page haven’t all given a good explicit rating for that

page.

These results prove that an implicit feedback recommender system is a possible

solution and that would make such systems become more user friendly for

customers. (Wikipedia.org; Douglas W. Oard 1998; Mark 2001)

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4

Privacy concerns

4.1 Main aspects

For the recommendations to be as accurate and useful as possible for the

customers, the recommender system needs to know as much as possible about

them. This collection of personal information can be done with or without the user’s

awareness. Indeed the personal data collected by an e-commerce website is done

through several ways like:

Web forms in which users provide their identification information (name,

address, e-mail address, phone number) or transactional information (account

number, shipping address).

Explicit ratings on products or services which will reveal the customers

preferences and tastes.

Implicit feedback (as seen in section 3.3) or identification information such as

the IP address of the user’s machine.

Due to this lack of anonymity, customers want to be able to control how their

personal information are being treated by e-commerce websites and be sure that

their data will not be used in some fraudulent manner.

As seen in section 2.2, collaborative filtering recommendations are based on a

community of users having similar interests but who don’t necessary know each

other. This linking between users can cause non respect of privacy concerns. Given

the fact that the preferences of one customer are used to compute recommendations

to another the question that has to be taken into consideration is which information

about that initial customer will be revealed to the recommendation user? This is why

there should be a balance between the opportunities for community building and the

respect of privacy concerns. For a better understanding of that aspect, we can take

19

the example of the collaborative filtering website PHOAKS (People Helping One

Another Know Stuff) which was created to help people help each other to find

appropriate and relevant web resources. As explained on the PHOAKS’ website, this

recommender system works in the following way (Phoaks.com): people post their

opinions of web resources in Usenet Netnews. Around the clock, PHOAKS reads,

classifies, abstracts and tallies those opinions automatically. PHOAKS' pages here

reflect the results. So this means that people who posted their opinions on the

original web resource don’t know how theirs opinions will be treated by PHOAKS

neither who is going to access this information.

To avoid privacy problems, one solution would be to get the information out of its

context so that people accessing it afterwards can’t know form where it comes and

who originated it. But this would put a limit on community building and giving the

users the opportunity to contact the people with who they have common interests.

One other solution that would provide a good balance between community building

and privacy is to create a notion of trust between the users and the recommender

system in a way that the latter only puts both parties in contact but let them chose

which information they would like to share with each other.

In the context of e-commerce websites, privacy polices have been founded in order

to insure their customers that their personal data will not be used in a fraudulent

way.(Loren Terveen 2001)

4.2 Privacy policies

Privacy policies are used by e-commerce websites in order to explain their customers

which information they collect, how it will be used, who will be able to access this

personal information and which security measures are taken to avoid unwanted

dissemination or use of their customers personal data (Wikiperdia.org). Each

company has its own privacy policy which contains several statements like:

The information collected will not be provided to any third party without the

customer’s awareness and authorization.

The customer’s email address or phone number will not be used for

advertising purpose.

Etc.

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The privacy policies will help customers have a more trustful relationship with

businesses as they expect that the statements made will to be respected which is not

always the case.

Indeed in many cases, those statements are written in a confusing way which makes

them difficult to understand for the users. In addition, some companies reserve the

right to change those statements without having to notice their customers and to sell

or exchange their personal data with third parties.

A user can’t be absolutely sure that privacy policies will be followed by the

companies who state them as long as there is no standardization. Fortunately, those

standards exist and are represented by banners which e-commerce websites can put

on their pages to legitimate their privacy policy in order to reduce the lack of

confidence and build a more trusting environment for customers. Two of those

brands are TRUSTe and BBBOnline. This kind of standard can have several

advantages according to a survey conducted by (Businessweek.com 1998):

Customers who already use web services declare that they would increase

their use if privacy was guaranteed

Security of the personal data would affect the customer’s decision to make

online purchases

Customers who are reticent to use web services would begin using them if

their privacy was assured.

In order to have the right of putting the banner of a brand like TRUSTe, e-commerce

websites have to agree to the following requirements (Paola 1999):

Notice: The Web site must post a privacy statement linked from the home

page, which includes disclosure of the site’s information gathering and

dissemination practices. TRUSTe works with the Web site to develop

comprehensive privacy statements that are easy to read and understand.

Choice: The Web site must provide, at a minimum, the ability for users to opt-

out of having their personal information used by third parties for secondary

purposes.

Security: The Web site must implement reasonable procedures to protect

personal information from loss, misuse, or unauthorized alteration.

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Data quality and access: The Web site must provide a mechanism for

consumers to correct inaccuracies in their information.

Verification and oversight: TRUSTe provides assurance to users that the site

is following its stated privacy practices through initial and periodic reviews,

seeding, and compliance reviews.

But regrettably not all e-commerce websites have adopted these privacy seal

program and there are still many having privacy issues. (J. Ben Schafer 2001)

4.3 Platform for Privacy Preferences

“The Platform for Privacy Preferences Project (P3P) enables Websites to express

their privacy practices in a standard format that can be retrieved automatically and

interpreted easily by user agents. P3P user agents will allow users to be informed of

site practices (in both machine- and human-readable formats) and to automate

decision-making based on these practices when appropriate. Thus users need not

read the privacy policies at every site they visit” (W3C 2007).

This technology provides a user friendly solution for user’s of a website to deal with

privacy policies and it has several benefits:

Many websites post privacy policies but only a few users will read them. And

most of those who take the time to read them, will not understand all

statements. With P3P, users only have to specify their privacy settings to their

agent (i.e. their web browser or other web tools) and the latter will read and

evaluate privacy policies on their behalf. This automation is made possible

because website’s privacy policies are encoded in an XML machine-readable

format.

Users can control their personal data and decide which information they want

to share with websites. For example a customer might want to share his email

address only if the e-commerce website agrees to use it for a particular

transaction in order to avoid any spamming.

Since customers entrust their personal information to their agent, they do not

have to retype them every time they access a new website.

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To avoid the sharing of customers personal data between e-commerce websites,

P3P agents establish a unique cryptographic identity called Pairwise Unique Identifier

(PUID) with each website. In this way, each e-commerce website knows a given

customers by a different PUID and there no link made between this PUID and the

customer’s real identity. In addition, this mechanism will not prevent a collaborative

recommender system to make good recommendations because it only needs to

know the user’s actions on a website to generate those recommendations.

An individual can also create multiple identities to represent multiple shopping

modalities. For instance, parents can choose to have different identities while

shopping for themselves and while shopping for their children. That would facilitate

the generation of recommendations since the system will know what category of

products should be recommended. (J. Ben Schafer 2001; Cranor 2003)

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5

Marketing perspectives

5.1 Contributions to E-Commerce

According to (Pine 1993), companies need to shift from the old world of mass

production where “standardized products, homogenous markets, and long product

life and development were the rule” to the new world where “variety and

customization supplant standardized products”. Indeed the degree of competition in

the virtual world of e-commerce is very high and companies can’t limit themselves to

produce a single product to satisfy all their customers’ needs but products and

services have to be personalized for each of them. But this variety has increased the

load of information given to the customers and thus made it more complicated to find

what best suits their needs. This is where recommender systems will help by making

recommendations based on customers’ interests and preferences.

These systems will boots sales of e-commerce websites in three different ways (J.

Ben Schafer 1999):

Making browsers become buyers: by helping customers to find what they

need, recommender systems will enhance the buying process

More cross-sell: additional products will be suggested to customers in order to

increase the size of their cart. For instance, Amazon.com recommends

products that have been frequently purchased by customers who purchased

the selected product.

Build Loyalty: the value-added relationship created by recommender systems

between e-commerce website and their customers will help building loyalty.

Website which best understand customers needs and suggest personalized

products and service will have loyal customers who will prefer that particular

website or their future purchase even if competitors proposes the same items.

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5.2 Business Models for cost recovery

To cover a recommender system’s maintenance costs, business models have to be

considered. (Paul 1997) suggest several possible solutions:

Charge recipients of recommendations either through subscriptions or pay-

per-use.

Websites using a recommender system can demand advertiser support i.e.

companies can advertise their products on the recommender website. But

there is a risk of corruption here because recommendation can be biased in

favor to the advertisers. Indeed since the latter are paying a fee for their ads to

be displayed and because the website needs that financial support such

practices often occur. Therefore, recommender systems have to be careful

that users will be able to make the difference between a recommendation and

an advertisement in order to remain credible to them.

Charge owners of the items being recommend i.e. a publisher who wants his

books to be recommended by the system has to pay a fee. In this case the

same problem as the preceding point can happen since recommendations are

subject to a fee the item owners will want their products to be recommended in

priority.

5.3 Recommendation delivery

The way how recommendations are delivered to the customers is an important

aspect that has to be taken into consideration during the design process of a

recommender system. There are three main technologies e-commerce websites can

use to deliver recommendations to their customers (J. Ben Schafer 2001):

Push technology: the main goal of this technology is to reach the customer

when he is not interacting with the e-commerce website in order to make him

come back to make further purchases. E-mails are the most common means

used for this kind of recommendation delivery. For instance, eBay is sending

periodically emails containing new items sold by customers’ favorite sellers in

order to solicit their interest.

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Pull technology: the recommendation display is controlled by the customer in

this case. The system will inform the customer that recommendations are

available but will not display them he requests them. Top 10 list of products is

an example of pull technology.

Passive technology: in this case, recommendations will be delivered to

customers while they are interacting with the e-commerce website and thus

are receptive to the idea of receiving recommendations. An example of

passive recommendation delivery is Amazon.com’s “Customer Who Bought”

which displays the products which customers who bought the selected item

also purchased. This technology will help increasing cross-sells as seen in

section 5.1. One weakness passively delivered recommendations delivered

could have is not to be noticed by the customers.

The most used technologies in today’s e-commerce websites are push and passive

technologies. The former to bring customers back and the latter to make

recommendations on their website.

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6

Conclusion

During this seminar we have seen that recommender systems have made it possible

for users to find products and services that best match their needs and preferences.

Indeed given the overload of information on the World Wide Web, this technology is

an adapted response to the users’ need for personalization and helps e-commerce

websites to create value for their customers in order to build customer satisfaction

and loyalty.

The contribution asked from the user’s side has its advantages and drawbacks.

Ratings and reviews will let users share their opinions on products and services they

have purchased and will give the opportunity for users looking for a particular product

or service to know what other users have experienced with those items. On the other

hand, asking a user to leave feedback about items is a time consuming effort and

only customers who are aware of what recommender systems can offer will provide

that effort constantly. Indeed users’ profile has to be kept update in order for the

recommendation to be always accurate and in relation with users’ current interests

and preferences. That being said, we believe that further work has to be done in

gathering personal information through implicit feedback, without decreasing the

accuracy of recommendations, which will make recommender systems much more

user friendly.

Given the increasing popularity of mobile business, we believe that recommender

systems should integrate contextual information in order to make recommendations

not only based on users’ interests but also on users’ current location. That would

make recommender systems even more attracting for customers who will get

recommendations everywhere.

27

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