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http://dx.doi.org/10.7838/jsebs.2011.16.3.191

How to Recommend Online Shopping Consumers the Best of Many Sellers? : Online Seller Recommendation System Using DEA Method  

An, Jung-Nam (KAIM 수학전문학원)
Rho, Sang-Kyu (서울대학교 경영전문대학원)
Yoo, Byung-Joon (서울대학교 경영전문대학원)
Publication Information
The Journal of Society for e-Business Studies / v.16, no.3, 2011 , pp. 191-209 More about this Journal
Abstract
In a buyer-seller transaction process, 'value for money,' a measure of quality-price-ratio, is one of the most important criteria for buyers' purchasing decisions. The purpose of this paper is to suggest a method which helps online shoppers choose the best of several sellers offering homogeneous goods. We suggest FDH (free disposal hull) model, an applied model of data envelopment analysis (DEA), for online buyer-seller transactions and verify it with the data from an Internet comparison shopping site. For this purpose, we analyze consumer choice behaviors by examining how consumers respond to different sale conditions such as price, brand, or delivery time. Then, we implement a seller recommendation system to support buyers' purchasing decisions. We expect our FDH model to provide valuable information for rational buyers who want to pay the least price for high quality products/services and to be used in implementing automated evaluation processes in micro transactions. Moreover, we expect that our results can be utilized for sellers' benchmarking strategies which help sellers be more competitive by showing them how to attract buyers.
Keywords
Comparison Shopping; Price Comparison; Seller Recommendation; DEA(Data Envelopment Analysis); FDH(Free Disposal Hull);
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