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Latent Topic Analysis for Predicting Group Purchasing Behavior on the Social Web
Models for Spatial, Temporal and Network Data -- A UAI Application Workshop (2013)
  • Feng-Tso Sun, Carnegie Mellon University
  • Martin Griss, Carnegie Mellon University
  • Ole J Mengshoel, Carnegie Mellon University
  • Yi-Ting Yeh, Stanford University
Abstract
Group-deal websites, where customers purchase products or services in groups, are an interesting phenomenon on the Web. Each purchase is kicked o ff by a group initiator, and other customers can join in. Customers form communities with people with similar interests and preferences (as in a social network), and this drives bulk purchasing (similar to online stores, but in larger quantities per order, thus customers get a better deal). In this work, we aim to better understand what factors in influence customers' purchasing behavior for such social group-deal websites. We propose two probabilistic graphical models, i.e., a product-centric inference model (PCIM) and a group-initiator-centric inference model (GICIM), based on Latent Dirichlet Allocation (LDA). Instead of merely using a customers' own purchase history to predict purchasing decisions, these two models include other social factors. Using a lift curve analysis, we show that by including social factors in the inference models, PCIM achieves 35% of the target customers within 5% of the total number of customers while GICIM is able to reach 85% of the target customers. Both PCIM and GICIM outperform random guessing and models that do not take social factors into account.
Keywords
  • latent Dirichlet allocation,
  • Bayesian networks,
  • group purchasing,
  • Web commerce,
  • social networks
Publication Date
July, 2013
Publisher Statement

@inproceedings{sun13latent,
 author = {Sun, Feng-Tso and Griss, M. and  Mengshoel, O. J. and Yeh, Yi-Ting},
 title = {Latent Topic Analysis for Predicting Group Purchasing Behavior on the Social Web},
 booktitle = {Proc. of UAI Application Workshops}, 
 year = {2013},
 month  = {July},
 address = {Bellevue, WA}
}
Citation Information
Feng-Tso Sun, Martin Griss, Ole J Mengshoel and Yi-Ting Yeh. "Latent Topic Analysis for Predicting Group Purchasing Behavior on the Social Web" Models for Spatial, Temporal and Network Data -- A UAI Application Workshop (2013)
Available at: http://works.bepress.com/ole_mengshoel/43/