Recommender system architecture for adaptive green marketing Recommender system architecture for adaptive green marketing Ying-Lien Lee a,⇑, Fei-Hui Huang b a Department of Industrial Engineering and Management, Chaoyang University of Technology, Taichung County 413, Taiwan b Department of Marketing and Distribution Management, Oriental Institute of Technology, Taipei County 220, Taiwan a r t i c l e i n f o Keywords: Green marketing Green consumerism Recommender system Fuzzy inference system a b s t r a c t Green marketing has become an important method for companies to remain profitable and competitive as the public and governments are more concerned about environmental issues. However, most online shopping environments do not consider product greenness in their recommender systems or other shop- ping tools. This paper aims to propose the use of recommender systems to aid the green shopping process and to promote green consumerism basing upon the benefits of recommender systems and a compliance technique called foot-in-the-door (FITD). In this study, the architecture of a recommender system for green consumer electronics is proposed. Customers’ decision making process is modeled with an adaptive fuzzy inference system in which the input variables are the degrees of price, feature, and greenness and output variables are the estimated rating data. The architecture has three types of recommendation: information filtering, candidate expansion, and crowd recommendation. Ad hoc customization can be applied to tune the recommendation results. The findings are reported in two parts. The first part describes the potentials of using recommender systems in green marketing and the promotion of green consumerism; the second part describes the proposed recommender system architecture using green consumer electronics as the context. Discussion of the proposed architecture and comparison with other systems are also included in this part. The proposed architecture provides a capable platform for person- alized green marketing by offering customers shopping advices tailored to their preferences and for the promotion of green consumerism. � 2011 Elsevier Ltd. All rights reserved. 1. Introduction Recommender systems have become an important technology for electronic commerce on many fronts (Bose, 2009; Kauffman & Walden, 2001). It can filter for online shoppers the vast amount of information, saving the customers from the information over- load problem (Chen, Shang, & Kao, 2009). It can be a decision aid for customers who are challenged when they are in the market for unfamiliar products. It can be a strategic marketing platform on which online venders can personalize promotions and sales for each customer (Chen, 2008; Shih, Chiu, Hsu, & Lin, 2002). Recommender systems have been vigorously researched and developed in the fields of academia and business. Some notable examples include Apple Inc.’s Genius of iTunes that make music recommendations, University of Minnesota’s MovieLens and Netflix’s Cinematch that recommend movie titles, Amazon.com’s recommender system that generates recommendations of an assortment of products, and Outbrain.com’s blog rating widget that recommends blogs a rater might be interested in. The domain of recommender systems is not limited to the famous instances men- tioned above. Recommender systems for news, web pages, jokes, academic articles, consumer electronics, restaurants, and a pleth- ora of other subject matters, have been researched and imple- mented (Adomavicius & Tuzhilin, 2005; Iijima & Ho, 2007). However, to our knowledge, few researches have dealt with rec- ommender system of green product. Green product is increasingly important in our global village as the general public is becoming more concerned of our impact on the planet. Driven by this trend, companies have been trying to de- sign and manufacture greener products, and have been trying to promote their products and brand images by communicating their greenness to the customers via a variety of channels. Yet, eco- labeling remains one of the fundamental ways to inform the cus- tomers how green their products are and in what respect their products are green. Eco-labels, usually issued by third-party orga- nizations, are textual or graphical presentations of the environ- mental characteristics of a product, which can be found on the product itself, on the packaging, or in the manual. Examples of eco-labels include Green Seal, Energy Star, and WEEE (Waste Elec- trical and Electronic Equipment Directive). Studies have shown that public education campaign is one of the key determinants of 0957-4174/$ - see front matter � 2011 Elsevier Ltd. All rights reserved. doi:10.1016/j.eswa.2011.01.164 ⇑ Corresponding author. Address: No. 168, Jifong E. Rd., Wufong Township, Taichung County 413, Taiwan. Tel.: +886 4 23323000; fax: +886 4 23742327. E-mail address: yinglienlee@gmail.com (Y.-L. Lee). Expert Systems with Applications 38 (2011) 9696–9703 Contents lists available at ScienceDirect Expert Systems with Applications j o u r n a l h o m e p a g e : w w w . e l s e v i e r . c o m / l o c a t e / e s w a http://dx.doi.org/10.1016/j.eswa.2011.01.164 mailto:yinglienlee@gmail.com http://dx.doi.org/10.1016/j.eswa.2011.01.164 http://www.sciencedirect.com/science/journal/09574174 http://www.elsevier.com/locate/eswa successful eco-labeling programs (Malcohn, Paulos, Stoeckle, & Wang, 1994). Public education campaign of eco-labeling programs can be done via methods such as media coverage, regulation, promotion, school curriculum, and so on. This research proposes using recom- mender systems, in addition to these methods, as a means to edu- cate and inform on-line customers. The justification of such proposal relies on two of the primary functions of a recommender system: information filtering and candidate expansion. When cus- tomers are confronted with a flood of products or with unfamiliar products, they may have difficulty in making a shopping decision. Based upon what they have purchased before, a recommender sys- tem can help the customers by filtering out items that are unlikely to be preferred. For example, Amazon.com’s recommender system generates a personalized list of recommended products each time a customer visits their web site. As to candidate expansion, when a customer is evaluating the decision to buy a product, a recom- mender system can ensure that other good candidates are included in the consideration set by finding related products based upon the product under consideration. Take Amazon.com’s recommender system for example again. When a customer is looking at the cat- alog page of a product, the recommender system recommends items similar to the current item. Tapping into the capabilities of information filtering and candidate expansion, recommender sys- tems can be transformed into a green product advocate informing the customers of available choices that are greener. A recom- mender system of green products can also sieve through a set of products to retrieve only the items matching an implicitly or explicitly degree of greenness designated by a customer. Such sys- tem can also find other products whose greenness and other as- pects are comparable based upon a product under consideration. The reduced effort in the decision making process may enhance the quality and users’ satisfaction of the decision (Häubl & Trifts, 2000), which in turn will make green shopping a more enjoyable experience. The adaptability of a recommender system can also contribute to the promotion of green consumerism by using a technique called foot-in-the-door (FITD) technique (Freedman & Fraser, 1966). FITD is a compliance technique in which a person is more likely to accept a larger request if this request is preceded by a smaller request. The technique is also found to be effective in com- puter-mediated communication (CMC) in addition to face-to-face or telephone communications (Guéguen, 2002). In a recommender system of green products, items with higher degree of greenness and with comparable or equal degrees of price and feature can be first recommended to a user who is reluctant to buy green prod- ucts. Appropriate feedback should be given to the user about the environmental contribution of the purchase one has made. The de- gree of greenness of the recommended items in the future can be adjusted accordingly if the users’ purchasing transactions reflect acceptance or rejection of the items. The goal of this paper is to develop a recommender system architecture for green consumer electronics. Instead of simply add- ing an additional green attribute to the conventional recommender systems, the architecture uses an adaptive behavioral agent to find the products of a certain degree of greenness according to users’ behaviors. The agent uses an adaptive fuzzy inference system to learn users’ behavior over time with a basic assumption that a bilateral relationship of either symbiosis or antibiosis exists be- tween the pairs of price vs. feature, price vs. greenness, and feature vs. greenness. The rest of this paper is organized as follows. The next section gives brief review of recommender systems and fuzzy inference systems. The proposed architecture is presented and discussed in Section 3. Conclusions and future research directions are presented in the final section. 2. Related work 2.1. Recommender system Recommender systems have a variety of forms with different functions (Manouselis & Costopoulou, 2007; Wan, Menon, & Rama- prasad, 2007). Therefore, it warrants a clear definition of the kind of recommender systems this paper is dealing with. Schein, Pope- scul, Ungar, and Pennock (2005) define recommender systems as the following: ‘‘Recommender systems suggest items of interest to users based on their explicit and implicit preferences, the pref- erences of other users, and user and item attributes’’. This defini- tion points out the fundamental parts and necessary input and output data of a recommender system. First, a recommender sys- tem needs data of preferences from single user or multiple users. The system can explicitly elicit preferences from users by asking them to rate some items, or implicitly by inferring their prefer- ences from past transactions (Resnick & Varian, 1997). Second, a recommender system requires attributes of users and items. Manouselis and Costopoulou (2007) refer to these two sets of attri- butes as ‘‘user model’’ and ‘‘domain model’’, respectively. Several representations can be used as user models, such as per user prod- uct ratings, demographic attributes, transaction histories, and so on. On the other hand, domain models can be represented as char- acteristics of products and as derived attributes such as taxono- mies, hierarchies, and ontologies. Both models may utilize the acquired user preferences to derive their own data. The core of a recommender system is the mechanism of sugges- tion generation based upon the user model and domain model. The mechanism can be formulated as follows (Adomavicius & Tuzhilin, 2005): Let C be the set of all customers and P be the set of all prod- ucts that a recommender knows of. In addition, let U(c, p) be the utility function that associates (c, p) pairs with utility values which can be ratings, profits, or some other measurements. The objective of a recommender system is to find a set of items p0 e P such that U(c, p) is maximized for a customer. The mathematical formulation is as follows: 8c 2 C; p0 ¼ arg max p2P Uðc; pÞ In the formulation, ‘‘arg max’’ means ‘‘the argument of the maximum’’. Recommender systems can be generally classified into three categories according to the mechanism of recommendation gener- ation (Adomavicius & Tuzhilin, 2005; Schein et al., 2005): (1) Con- tent-based systems recommend items that are similar to the ones a user preferred in the past. (2) Collaborative systems recommend items that other like-minded users preferred in the past. (3) Hybrid systems recommend items by combining content-based and col- laborative methods in recommendation generation. As Adomavicius and Tuzhilin (2005) point out, content-based and collaborative systems have some challenges to be dealt with. For content-based systems, the first problem is ‘‘limited content analysis’’, in which case the recommendation is limited by the fea- tures associated with the items. However, some features are hard- er to extract than others are. For example, extracting features from textual information is easier than from multimedia data. Also, items that are identical in terms of features are indistinguishable. The second problem is overspecialization, in which case the sys- tem can only recommend items that are similar to items a user liked in the past. In other words, the lack of diversity may jeopar- dize the practicality of a recommender system. The third problem is ‘‘new user problem’’, in which case a user is unable to get reli- able recommendations until a sufficient amount of transactions are present for the recommender system to learn about the users’ preferences. Y.-L. Lee, F.-H. Huang / Expert Systems with Applications 38 (2011) 9696–9703 9697 https://isiarticles.com/article/22904