Personal‐discount sensitivity prediction for mobile coupon conversion optimization

Asnat Greenstein‐Messica, Lior Rokach, Asaf Shabtai

Journal of the Association for Information Science and Technology 68 (8 …, 2017

The high adoption of smart mobile devices among consumers provides an opportunity for e‐commerce retailers to increase their sales by recommending consumers with real time, personalized coupons that take into account the specific contextual situation of the consumer. Although context‐aware recommender systems (CARS) have been widely analyzed, personalized pricing or discount optimization in recommender systems to improve recommendations’ accuracy and commercial KPIs has hardly been researched. This article studies how to model user‐item personalized discount sensitivity and incorporate it into a real time contextual recommender system in such a way that it can be integrated into a commercial service. We propose a novel approach for modeling context‐aware user‐item personalized discount sensitivity in a sparse data scenario and present a new CARS algorithm that combines coclustering …