Does product recommendation meet its Waterloo in unexplored categories? No, price comes to help

Abstract

State-of-the-art methods for product recommendation encounter significant performance drop in categories where a user has no purchase history. This problem needs to be addressed since current online retailers are moving beyond single category and attempting to be diversified. In this paper, we investigate the challenge problem of product recommendation in unexplored categories and discover that the price, a factor transferrable across categories, can improve the recommendation performance significantly. Through our investigation, we address four research questions progressively: 1) what is the impact of unexplored category on recommendation performance? 2) How to represent the price factor from the recommendation point of view? 3) What does price factor across categories mean to recommendation? 4) How to utilize price factor across categories for recommendation in unexplored categories? Based on a series of experiments and analysis conducted on a dataset collected from a leading E-commerce website, we discover valuable findings for the above four questions: first, unexplored categories cause performance drop by 40% relatively for current recommendation systems; second, the price factor can be represented as either a quantity for a product or a distribution for a user to improve performance; third, consumer behavior with respect to price factor across categories is complicated and needs to be carefully modeled; finally and most importantly, we propose a new method which encodes the two perspectives of the price factor. The proposed method significantly improves the recommendation performance in unexplored categories over the state-of-the-art baseline systems and shortens the performance gap by 43% relatively. Copyright 2014 ACM.