Consumer Behavior in Social Shopping - Empirical Insights 2013
1. Association Rules in Web Usage
Logfile Data – Empirical Insights into
the Use of User-Generated
Web Site Features
International Conference on Electronic Commerce 2013
Turku, Finland
Aug. 13, 2013
Dr. Christian Holsing and Dr. Carsten D. Schultz
Chair of Marketing, University of Hagen, Germany
Research supported by
SAS Institute Germany
2. Overview
2
1. Relevance and Basics of Business Model SSC
2. Literature Review
3. Research Question/Methodology
4. Empirical Results (Logfile Analysis)
5. Conclusion and Outlook
3. University of Hagen
3
Largest university in German-speaking countries
> 80,000 students
Distance Learning System
50 study centres in Germany, Austria, Switzerland, and
Central and Eastern Europe
Faculties:
Cultural and Social Sciences
Mathematics and Computer Science
Business Administration and Economics
Law
www.fernuni-hagen.de/marketing
4. Relevance of Business Model SSC
4
Web 2.0 provides consumers with many methods of
creating and sharing user-generated content (UGC)
Social media are growing rapidly
Social Networking + Online-Shopping = Social Shopping
Social Shopping is about connecting consumers and
shopping together
Business model Social Shopping Community (SSC)
becomes more relevant
polyvore.com: more than 21 Mio. Unique Visitors/Month;
22 Mio. $ Venture Capital
5. SSC: Definition
5
OLBRICH/HOLSING 2011, p. 15:
A SSC is an online-shopping service that connects
consumers and lets them discover, share, recommend,
rate, and purchase products.
In contrast to traditional e-commerce channels, such as
online-shops, and shopbots, SSCs additionally offer user-
generated social-shopping features, as well as potential
interaction, so as to initiate or simplify purchase decisions.
8. Literature Review: Social Shopping
Research in Social Shopping is just at the beginning
Only few aspects are analyzed, e.g., impact of user-
generated content on economic outcomes
(GODES/MAYZLIN 2004; CHEVALIER/MAYZLIN 2006; LIU
2006; MOE/TRUSOV 2011)
Some recent studies are analyzing Social Shopping/
SSCs more detailed:
KANG/PARK 2009: Acceptance Factors of Social Shopping
SHEN/EDER 2011: An Examination of Factors Associated
with User Acceptance of Social Shopping Websites
8
9. Literature Review: Logfile Analysis/E-Commerce
9
Authors Country, Data Focus Sessions
BUCKLIN/SISMEIRO 2003 n. a., 10/1999 Car website 6,630 sessions
HUANG/LURIE/MITRA 2009 USA, 01 - 07/2004 comScore panel: websites in 6 product categories 210 sessions
JOHNSON/MOE/FADER/BELLMAN/LOHSE 2004 USA, 07/1997 - 06/1998 Media Metrix panel: 51 websites (books, CDs, flights) 33,452 unique visits
MOE 2003 n. a., 5/18 - 7/05/2000 Online shop for nutrition products 5,730 users; 7,143 sessions
MONTGOMERY/LI/SRINIVAN/LIECHTY 2004 USA, 4/01 - 4/30/2002 Media Metrix panel: barnesnoble.com, books.com,
bn.com
1,160 users; 1,659 sessions
PARK/CHUNG 2009 USA, 07 - 12/2004 comScore panel: travel websites (Expedia, etc.) Sessions of 1,190 panelists
PARK/FADER 2004 USA, 10/1997 - 05/1998 Media Metrix panel: online shops for books, and CDs 7,377 panelists; 18,027
sessions
VAN DEN POEL/BUCKINX 2005 n. a., 5/25 - 4/18/2002 Online shop for wine 1,382 visitors; 10,173
sessions
ZHANG/FANG/SHENG 2006 USA, 07 - 12/2002 comScore panel: 69 websites (CDs, computer hardware,
flight tickets)
104,416 sessions
This study Germany, Austria,
Switzerland, 5/01 -
10/31/2009
SSC focussing on fashion, living, and lifestyle 2.9 million sessions
10. Literature Review: Clickstream Studies
Clickstream data are a powerful source of information
Using clickstream data confronts researchers with a number of
difficulties, e.g.:
Capturing the purchasing environment of consumers
Associated data pre-processing
Accordingly, relatively few studies in fact use such data
PADMANABHAN/ZHENG/KIMBROUGH 2001; MOE/FADER 2004;
SISMEIRO/BUCKLIN 2004; VAN DEN POEL/BUCKINX 2005, PARK/CHUNG 2009
Research gap:
Analyzing consumer behavior in SSC‘s
Analyzing impact of more than just one kind of user-generated content,
e.g., ratings
Focus on categories of fashion, living, and lifestyle
10
11. Research Question/Methodology
Which shopping features, especially user-
generated features, of a SSC are used
together within user sessions?
Data: Web usage logfiles of a SSC
Method: Association Rule Learning
we will identify strong rules, and thus structural
relations between user-generated and direct
shopping features
using different measures of interestingness
11
12. Logfile Analysis: Data and Process
12
Logfiles of a high-traffic SSC
Categories of fashion, living, and lifestyle
> 600 participating online shops
Product data base > 1.5 million products
Period from May 1st, 2009 to October 31st, 2009
Number of sessions: 2.9 million
4 variable categories: general, direct shopping,
social shopping, and transactional
Software: SAS Enterprise Miner 6.2
13. Variables (4 Categories)
13
General
Home (number of home page visits)
Product (number of product-detail sites visited)
Direct-Shopping
Filter mechansims (brand, category, gender, price, sale, shop)
Search field
Social-Shopping (user-generated Web site features)
List
Style
Profile
Tag
Transactional
Click out (number of visits to participating online shops)
15. Method of Association Rules Learning
15
Set of user sessions S = {s1, s2, …, sn}
A user session is a sequence of interactions
I = {i1, i2, …, im}
Association rule is
an implication of A B
where A, B I and A B = Ø
{HOME, PRODUCT} {CLICK_OUT}
16. Measures of Association Rules
16
Significance measure
Quality measure
Interestingness measure
S
sBASs
BA
})(|{
)sup(
})(|{
})(|{
)(
sASs
sBASs
BAconf
)sup(
)(
)(
B
BAconf
BAlift
17. Summary of Association Rules
17
Conclusion
min.
support
min.
confident
max.
antecedents
number of
assoc. rules
CLICK_OUT .01 .05 3 32
PRODUCT .01 .05 3 34
LIST .007 .03 3 3
PROFILE .007 .03 3 3
STYLE .007 .03 3 4
TAG .01 .05 3 19
20. Implic@tions
20
Association rules provide insights into structural
relationships in user sessions
recommendations can be derived to improve the use and
usability, e.g., linking certain shopping features
Identifying features that support main economic aim: click-out
Social shopping features: no strong relationships with click-out
Potential strategy: adjust features, e.g., by integrating a direct click-out into
styles and lists, instead of having product-detail sites as an intermediate step
Social shopping features: highly associated to each other
Way of increasing click-outs: loosen the linkage between these features
However, one important user motive may be to browse and
participate in the community manage specific user groups
21. Implic@tions
21
Provide different features to various user types
e.g., to community-orientated users, browers, buyers, etc.
specific cluster analysis or self-organizing maps (SOM)
Split testing could evaluate such a solution before implementation
Provide sales promotions within lists, profiles, and styles
increase click-out rate
Search results may also include direct links to online shops
e.g., by miniature previews, in addition to product-detail sites
Management needs to monitor consumer confusion or reactance
Overall, association rules provide evidence enabling the
management to reduce user navigation and search effort
increase usability
22. Limitations and Future Research
22
Future research should confirm results and extend the focus
to other features and to different types of online services
As user-generated features continue to evolve dynamically,
more recent data can incorporate the latest developments
Method of Association Rules Learning
does not consider the order of interactions within a session
Rules simply consider request for an interaction, not frequency
good starting point to identify interesting relations
further inspection: order (clickstream) and frequency of interactions
Distinguish between different user groups to analyze
potential differences between these segments
23. Conclusion and Outlook!
23
We enhance the research in Social Shopping
It seems likely that Social Shopping will become
more and more important
Use of social media increases
New business models arise, e.g., Pinterest (online
pinboard)
New technologies will be established rapidly (mobile,
tablets, etc.)
Booz&Co forecast: social commerce revenues will hit
$30bn by 2015
24. Thank You
For Your Attention!
Dr. Christian Holsing and Dr. Carsten D. Schultz
Contact:
Dr. Christian Holsing: http://social-commerce.net, www.lynx-ecommerce.de
Dr. Carsten Schultz: www.fernuni-hagen.de/marketing