Hybrid approaches to product recommendation based on customer lifetime value and purchase preferences

Duen-Ren Liu, Ya-Yueh Shih
2005 Journal of Systems and Software  
Recommending products to attract customers and meet their needs is important in fiercely competitive environments. Recommender systems have emerged in e-commerce applications to support the recommendation of products. Recently, a weighted RFM-based method (WRFM-based method) has been proposed to provide recommendations based on customer lifetime value, including Recency, Frequency and Monetary. Preference-based collaborative filtering (CF) typically makes recommendations based on the
more » ... s of customer preferences. This study proposes two hybrid methods that exploit the merits of the WRFM-based method and the preference-based CF method to improve the quality of recommendations. Experiments are conducted to evaluate the quality of recommendations provided by the proposed methods, using a data set concerning the hardware retail marketing. The experimental results indicate that the proposed hybrid methods outperform the WRFM-based method and the preference-based CF method.
doi:10.1016/j.jss.2004.08.031 fatcat:j7mx47akdvfxpijtw4yz74jijq