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From Accuracy to Diversity in Product Recommendations: Relationship Between Diversity and Customer Retention

机译:从产品推荐的准确性到多样性:多样性与客户保留之间的关系

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摘要

Recommending diverse products to consumers is a new strategy for the next generation of recommender systems. However, no existing studies have empirically identified the impact of product diversity on consumer behavior. The aim of this study is to explain how product category diversity affects customer retention rates. To answer this research question, we examine how the number of product categories purchased by consumers is related to customer retention rates at a large digital content distributor. We use panel data consisting of product characteristics, purchase transactions, and customer retention rates from the company. Through segment-level and individual-level panel data analyses, we find that purchase quantity is positively associated with customer retention rates, and that variety of purchased digital content categories is positively associated with customer retention rates. That is, customers who have purchased digital content from multiple categories are more likely to stay longer than those who purchased digital content from a single category or from fewer categories. Put differently, as a complement to the conventional wisdom that just recommending products with similar features that a customer values highly (i.e., similar content from the same category) is important, our results imply that recommending products with different features (i.e., different content across different categories) is also important.
机译:向消费者推荐多样化的产品是下一代推荐系统的一项新策略。但是,没有任何现有研究从经验上确定产品多样性对消费者行为的影响。这项研究的目的是解释产品类别的多样性如何影响客户保留率。为了回答这个研究问题,我们研究了消费者购买的产品类别数量与大型数字内容发行商的客户保留率之间的关系。我们使用的面板数据包括公司的产品特征,购买交易和客户保留率。通过细分级别和个人级别的面板数据分析,我们发现购买数量与客户保留率呈正相关,而各种购买的数字内容类别与客户保留率呈正相关。也就是说,从多个类别购买数字内容的客户比从单个类别或更少类别购买数字内容的客户更有可能停留更长的时间。换句话说,作为对传统建议的补充,即仅推荐具有客户高度评价的相似功能(即,同一类别中的相似内容)很重要的产品,我们的结果暗示,推荐具有不同功能(即不同产品中的不同内容)的产品不同的类别)也很重要。

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