Personalization in E-commerce Applications Presented by Ingrid Liao 2018/11/23 Personalization in E-commerce Applications

Personalization in E-commerce Applications Topics E-commerce (EC) Adaptation Frameworks for EC website development Trends in e-commerce applications Reminder 2018/11/23 Personalization in E-commerce Applications

Personalization in E-commerce Applications E-commerce (EC) 2018/11/23 Personalization in E-commerce Applications

E-commerce (EC): Introduction Definition: the conducting of business communication and transactions over networks and through computers Buying and selling of goods and services All aspects of business interaction, two levels: Business to Business e-commerce (B2B) Business to Consumer e-commerce (B2C) ( Source: Glossary of IT & Internet Terms) 2018/11/23 Personalization in E-commerce Applications

E-commerce (EC): Advantages Geographical and time zone distance are no longer important Presentation of products and services in a web-based catalog is an effective way to publish information at low costs 2018/11/23 Personalization in E-commerce Applications

E-commerce (EC): Problems & Solutions Lack of face to face dialog Good EC product candidates: software, music, book, high-tech products Good EC service candidates: information, booking, shipping services Problematic candidates: dress, insurance One size fits all catalog Personalization Allowing individuals to customize website appearance and functionality 2018/11/23 Personalization in E-commerce Applications

Personalization in E-commerce Applications Adaptation 2018/11/23 Personalization in E-commerce Applications

Adaptable versus Adaptive Adaptation decided by user Lower-level feature Adaptive Adaptation performed by system in an automated way 2018/11/23 Personalization in E-commerce Applications

Factors for Adaptivity User Device Context of use 2018/11/23 Personalization in E-commerce Applications

Personalization in E-commerce Applications User Characteristics User characteristics Knowledge & skills Interests & preferences Needs about disability Goals B2C e-commerce Complex products/services Category or properties Accessible services Application domain 2018/11/23 Personalization in E-commerce Applications

Personalization in E-commerce Applications Type of Devices Environment data PC, laptop, mobile phone, PDA, on-board device, … Different characters Screen size Computation and memory capabilities I/O mechanism Connection speed, bandwidth … 2018/11/23 Personalization in E-commerce Applications

Personalization in E-commerce Applications Context of Use Broad Physical context User location (most popular context feature) Environment conditions Social Context Social community or group Task being performed 2018/11/23 Personalization in E-commerce Applications

Personalization in E-commerce Applications What is Adapted? Suggestion of product/service (content recommendation) Recommender Tailored to user/device/context characteristics Configuration guide Presentation of product/service Media, presentation styles User interface (structure) Layout e.g. information & navigation structure Adaptation features 2018/11/23 Personalization in E-commerce Applications

More HCI, Less Adaptation Accessibility 3D, virtual reality UI Usability Guidelines e.g. Serco Users w/ special needs Emotional buying style Being usable is the 1st step for being successful 2018/11/23 Personalization in E-commerce Applications

Frameworks for EC website development 2018/11/23 Personalization in E-commerce Applications

Personalization in E-commerce Applications Merchant Systems Facilitate creation and management of electronic catalogs Support transactional, secure services and integration with legacy software Only basic personalization features, e.g. product recommendation Personalization strategies, e.g. BroadVision Push: recommend information and access Pull: handle user request in a personalized way Quantifier matching “Quantifier matching”, a filtering strategy, allowing companies to target content delivery, access to applications by using quantifies that match appropriate content and capabilities 2018/11/23 Personalization in E-commerce Applications

Personalized Product Recommendation Enhance recommendation capabilities Interactive: user search according to own selection criteria, e.g. dynamic taxonomies Inference: based on user behavior Recommendation techniques Collaborative filtering: analyzing similarities in different people’s purchase history, e.g. Amazon Content-based filtering: analyzing product properties similar to individual’s past purchase Taking indirect users into account 2018/11/23 Personalization in E-commerce Applications

Collaborative versus Content-based filtering Pros Items as elementary entities Cons “Bootstrapping” problems: minimum number of ranking Sparse user-rank matrix Content-based Pros Successfully recommend new items Cons Information must be available User behavior monitor Similar items 2018/11/23 Personalization in E-commerce Applications

How to Enhance Customer’s Trust in Recommender Transparency and explanation Right amount of information Negotiation between customer and system Explanation of recommendation 2018/11/23 Personalization in E-commerce Applications

Customer Information Sharing Increase knowledge about common customers Points for attention Respect customer’s privacy preferences Mutual trust between service providers Misuse Competitors 2018/11/23 Personalization in E-commerce Applications

Personalized Product Info Presentation Individual customer’s interests & preferences Dynamically generated product descriptions in electronic catalogs How? Individual user model Different levels of detail Information on demand Customized compare table Example: SeTA system 2018/11/23 Personalization in E-commerce Applications

Personalized Product Presentation Example For layperson, customers with low receptivity and minimal background in telecommunication products: a few features are described using simple terminology 2018/11/23 Personalization in E-commerce Applications

Personalized Product Presentation Example Highly receptive user: more detailed and technical descriptions are generated for expert customers 2018/11/23 Personalization in E-commerce Applications

Personalized Product Presentation Example Customized compare table Enable user to check product similarities and differences important to him/her Unobtrusively identify user priorities 2018/11/23 Personalization in E-commerce Applications

Customer Relationship Management (CRM) One-to-one interaction Ultimate goal: profit increase Individual and personalized interaction Customer satisfaction Long-term relationship with customers Increase customer loyalty Accurate user model Supplement the lack of direct and personal contact with a human being 2018/11/23 Personalization in E-commerce Applications

Personalization in E-commerce Applications Mass Customization Production of product/services tailored to specific customer needs, maintaining mass production efficiency and costs Past: off-the-shelf goods Good Enhance relationship between customer & vendor Limitation Costly and require expertise knowledge in configuration from scratch 2018/11/23 Personalization in E-commerce Applications

Mass Customization Example: Footwear http://www.adidas.com/products/miadidas04/content/uk/container.asp 2018/11/23 Personalization in E-commerce Applications

Trends in e-commerce applications 2018/11/23 Personalization in E-commerce Applications

Personalization in E-commerce Applications Ubiquitous Computing Possibility of accessing a serve anytime, anywhere and exploiting different types of (mobile) devices Adaptation in particular to context of use and device specific requirements Context-aware Applications Example: mobile guides Ability to integrate different adaptation strategies 2018/11/23 Personalization in E-commerce Applications

Personalization in E-commerce Applications M-commerce Commercial transactions performed by exploiting wireless devices Support e-commerce transactions by providing information access and promotion Information about user’s local context Timely, relevant, focused services Physical context Type of activity 2018/11/23 Personalization in E-commerce Applications

M-commerce Services and Applications (Source: Grami and Schell) 2018/11/23 Personalization in E-commerce Applications

Low Acceptance of Mobile Devices Technical limitation of mobile devices High cost yet poor quality services Lack of standards and protocols Individual’s attitudes User’s goal … 2018/11/23 Personalization in E-commerce Applications

Design Elements of M-commerce Interface 2018/11/23 Personalization in E-commerce Applications (Source: Lee and Benbasat)

M-commerce: Adaptation Adapting product/service presentation to screen size Adapting layout of user interface to characteristics of device 2018/11/23 Personalization in E-commerce Applications

Personalization in E-commerce Applications Reminder 2018/11/23 Personalization in E-commerce Applications

Personalization in E-commerce Applications Not a goal, but Add values to CRM by supporting long-term relationship Quality of the offer if tailored to customer needs Usability if make navigation easier Back-office integration 2018/11/23 Personalization in E-commerce Applications