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1. 2023/4/14 Personalization in E-commerce Applications 1
Personalization in
E-commerce Applications
Presented by Ingrid Liao

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Topics
 E-commerce (EC)
 Adaptation
 Frameworks for EC website development
 Trends in e-commerce applications
 Reminder

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E-commerce (EC)

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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)

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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

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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

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Adaptation

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Adaptable versus Adaptive
 Adaptable
 Adaptation decided by
user
 Lower-level feature
 Adaptive
 Adaptation performed
by system in an
automated way

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Factors for Adaptivity
 User
 Device
 Context of use

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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

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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
 …

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Context of Use
 Broad
 Physical context
 User location (most popular context feature)
 Environment conditions
 Social Context
 Social community or group
 Task being performed

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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

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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

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Frameworks for EC website development

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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

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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

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Collaborative versus Content-based filtering
 Collaborative
 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

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How to Enhance Customer’s Trust in Recommender
 Transparency and explanation
 Right amount of information
 Negotiation between customer and system
 Explanation of recommendation

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Customer Information Sharing
 Increase knowledge about common customers
 Points for attention
 Respect customer’s privacy preferences
 Mutual trust between service providers
 Misuse
 Competitors

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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

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Personalized Product Presentation Example

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Personalized Product Presentation Example

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Personalized Product Presentation Example
 Customized compare table
 Enable user to check product similarities and
differences important to him/her
 Unobtrusively identify user priorities

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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

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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

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Mass Customization Example: Footwear
 http://www.adidas.com/products/miadidas04/content/uk/container.asp

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Trends in e-commerce applications

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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

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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

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M-commerce Services and Applications
(Source: Grami and Schell)

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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
 …

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Design Elements of M-commerce Interface
(Source: Lee and Benbasat)

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M-commerce: Adaptation
 Adapting product/service presentation to
screen size
 Adapting layout of user interface to
characteristics of device

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Reminder

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Personalization
 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