Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
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Prediction of New Customer's Degree of Loyalty of Internet Shopping Mall Using Continuous Conditional Random Field

Continuous Conditional Random Field에 의한 인터넷 쇼핑몰 신규 고객등급 예측

  • Ahn, Gil Seung (Department of Industrial and Management Engineering, Hanyang University) ;
  • Hur, Sun (Department of Industrial and Management Engineering, Hanyang University)
  • 안길승 (한양대학교 산업경영공학과) ;
  • 허선 (한양대학교 산업경영공학과)
  • Received : 2014.07.20
  • Accepted : 2014.10.21
  • Published : 2015.02.15
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Abstract

In this study, we suggest a method to predict probability distribution of a new customer's degree of loyalty using C-CRF that reflects the RFM score and similarity to the neighbors of the customer. An RFM score prediction model is introduced to construct the first feature function of C-CRF. Integrating demographical similarity, purchasing characteristic similarity and purchase history similarity, we make a unified similarity variable to configure the second feature function of C-CRF. Then parameters of each feature function are estimated and we train our C-CRF model by training data set and suggest a probabilistic distribution to estimate a new customer's degree of loyalty. An example is provided to illustrate our model.

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References

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