1. +
Predictive Analytics for Cars.com
Directed by Professor Martin Bariff
Xiaofei Yang, Joyce
Yi Shi, Ivy
Yingqiu Zhu, Chris

2.  Introduction
 Data Preparation

+
Data Mining Methods
 Better Cars.com
2

3. +
Introduction
Yingqiu Zhu, Chris
3

4. + 4
INTRODUCTION
SPSS MODELER

5. +
Data Preparation
Yingqiu Zhu, Chris

6. +
6
DATA
PREPARATION
KEY VARIABLES
a. Basic Information
b. Ratings
c. Indicators

7. +
7
DATA
PREPARATION
CLEANING
Shopping
Quality for Used
of
Repair
Overall
Rating
Ready-to-Use Data

8. + 8
DATA PREPARATION
BALANCING
Unbalanced Data Balanced Data
16.43% 30.21%
3.01% 5.54%
2.11% 3.88%
10.01% 18.40%
68.45% 41.96%
27
％

9. +
Data Mining Methods
Yingqiu Zhu, Chris
& Xiaofei Yang, Joyce

10. + 10
METHODS
• K-Means
Cluster Analysis
• Decision Tree
Predictive Analysis
Text Mining

11. + 11
CLUSTER ANALYSIS
K-MEANS
 K-Means is the most popular
nonhierarchical clustering
method.
 K-Means is based on geometric
notions of similarity

12. + 12
CLUSTER ANALYSIS
K-MEANS
Model Summary Model Accuracy

13. R13
ANALYSI
S
Yes No
5 1
Importance 100%
K-Means
5 1
5 1
+ Yes No
Importance
11%

14. + 14
CLUSTER ANALYSIS
K-MEANS
Customers
who purchase used cars from a dealer
 rating high for the dealer
 recommending the dealer to others.

15. + 15
PREDICTIVE ANALYSIS
INTRODUCTION OF DECISION TREE MODEL
 A tree-building algorithm
 Recursively splitting the data into smaller and smaller groups based on the
fields that provides the maximum information gain
 Used C5.0 model in our research

16. + 16
PREDICTIVE ANALYSIS
DECISION TREE
Decision Tree with Balanced Data
60% 40%
Evaluation Standard
 Overall accuracy: > 80%
 Favorability between training & testing samples: The results
with the testing sample compare favorably to the training
sample.

17. + 17
PREDICTIVE ANALYSIS
DECISION TREE
Rating - Customer Service

18. + 18
PREDICTIVE ANALYSIS
INTRODUCTION OF TEXT MINING MODEL
 Extract key concepts from the text and create categories with
these concepts by using linguistic and frequency techniques
 Explore more information and context included in the data
 Better compare the results with and without text data and see
the difference

19. + 19
PREDICTIVE ANALYSIS
DECISION TREE MODEL WITH TEXT DATA
Model with Only Numeric Data Model with Text & Numeric Data

20. + 20
PREDICTIVE ANALYSIS
Interactive Workbench Categories and Concepts View

21. 21
Trustful & Knowledgeable
Extended warranty
Relatively consistent pricing
buying/buying process
Nearest location < Service & Credibility

22. + 22
PREDICTIVE ANALYSIS
TEXT MINING
Rating = 5 Rating = 1
High Overall Rating Low Overall Rating
100
90 100
80 90
80
70 70
60 60
50 50
40 40
30 30
20 20
10 10
0 0
% %

23. +
Better Cars.Com
Yi Shi (Ivy)

24. What we get from our analysis… 24
Less influential dealer’s Purchase behavior
information =>Higher overall rating
Overall Rating
Higher rating for
Text Mining
buying process &
customer service =>New Hint for
Consumer behavior
=>Higher Overall Rating

25. + 25
Stimulus – Influence Overall Rating
NEW HINT
 Buying Process (experience)
-Sales people
-Service
-Facility (Eg: Internet)
-Family’s feeling
 Price sensitivity
 Finance issue

26. + 26
Motivation
STEP 1: Customers have more rights on review sheet
 New Review Sheet
Personal
Information
Additional
Questions
Review
Additional
Rating

27. 27
Additional Rating
Description Matching Level

28. 28
Additional Questions
 Are you satisfied with this purchase?
 Yes  No
Please tell us WHY (Mark all that apply)
 Quality of in-store service
 Quality of vehicle
 Price
 Financial Service (Insurance, cash deal, warranty cost, monthly payment)
 Location of dealer
 Sales People
 In-store facility
 In-store environment
 Can/Cannot get vehicle in quickly enough
 Service Department hours
 Alternative transportation not available (rental car, shuttle, etc.)
 Other______________

29. + 29
Motivation
STEP 2: More visual hint for customers
Dealer Rating Best Seller
Extended Warranty Label
Dealer:
Dealer:

30. + 30
Motivation
STEP 3: New Dealers Resume
• Lounge with snacks and
Facilities: drink
• Free Wi-Fi
• Insurance
• Deal/Gift
Services:
• Extended Warranty
• Maintenance
• Free certification
More space for
Dealer Description
3 others viewing this vehicle right now
15 others bought vehicles from this
dealer in the last month

31. + 31
Motivation
STEP 4: Monthly rating list
Monthly highest rating dealer
• Sub-rating list
• Monthly Star Dealer (label in the search page)
Monthly recommended dealer
Monthly best seller
The most favorable dealer

32. + 32
Better Cars.Com
 Combine Cars review sheet and Dealer review sheet
 Continue to review dealer?
 Yes  No
Dealers Review sheet………
 Add schedule plug-in
 Online voicemail
 Add to Favorite
 Relevant vehicles to consider
 You Viewed
 Customer who view this also viewed
 Recommended base on your browsing history

33. +
Predictive Analytics for Cars.com Xiaofei Yang, Joyce
Directed by Professor Martin Bariff Yi Shi, Ivy
Yingqiu Zhu, Chris
Thank Questions???
You for Your Listening