Discovering temporal purchase patterns with different responses to promotions

Ling Luo, Bin Li, Irena Koprinska, Shlomo Berkovsky, Fang Chen

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contribution

5 Citations (Scopus)

Abstract

The supermarkets often use sales promotions to attract customers and create brand loyalty. They would often like to know if their promotions are effective for various customers, so that better timing and more suitable rate can be planned in the future. Given a transaction data set collected by an Australian national supermarket chain, in this paper we conduct a case study aimed at discovering customers' long-term purchase patterns, which may be induced by preference changes, as well as short-term purchase patterns, which may be induced by promotions. Since purchase events of individual customers may be too sparse to model, we propose to discover a number of latent purchase patterns from the data. The latent purchase patterns are modeled via a mixture of non-homogeneous Poisson processes where each Poisson intensity function is composed by long-term and short-term components. Through the case study, 1) we validate that our model can accurately estimate the occurrences of purchase events; 2) we discover easy-to-interpret long-term gradual changes and short-term periodic changes in different customer groups; 3) we identify the customers who are receptive to promotions through the correlation between behavior patterns and the promotions, which is particularly worthwhile for target marketing.
Original languageEnglish
Title of host publicationCIKM '16 Proceedings of the 25th ACM international on conference on information and knowledge management
Place of PublicationNew York
PublisherAssociation for Computing Machinery (ACM)
Pages2197-2202
Number of pages6
ISBN (Electronic)9781450340731
DOIs
Publication statusPublished - 24 Oct 2016
Externally publishedYes
Event25th ACM International Conference on Information and Knowledge Management, CIKM 2016 - Indianapolis, United States
Duration: 24 Oct 201628 Oct 2016

Other

Other25th ACM International Conference on Information and Knowledge Management, CIKM 2016
CountryUnited States
CityIndianapolis
Period24/10/1628/10/16

Keywords

  • customer segmentation
  • customer behaviors
  • temporal modeling
  • non-homogeneous Poisson process

Fingerprint Dive into the research topics of 'Discovering temporal purchase patterns with different responses to promotions'. Together they form a unique fingerprint.

  • Cite this

    Luo, L., Li, B., Koprinska, I., Berkovsky, S., & Chen, F. (2016). Discovering temporal purchase patterns with different responses to promotions. In CIKM '16 Proceedings of the 25th ACM international on conference on information and knowledge management (pp. 2197-2202). New York: Association for Computing Machinery (ACM). https://doi.org/10.1145/2983323.2983665