• Journal of Intelligence and Information Systems
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• v.26 no.2
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• pp.57-78
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• 2020

With the development of the Internet, consumers have had an opportunity to check product information easily through E-Commerce. Product reviews used in the process of purchasing goods are based on user experience, allowing consumers to engage as producers of information as well as refer to information. This can be a way to increase the efficiency of purchasing decisions from the perspective of consumers, and from the seller's point of view, it can help develop products and strengthen their competitiveness. However, it takes a lot of time and effort to understand the overall assessment and assessment dimensions of the products that I think are important in reading the vast amount of product reviews offered by E-Commerce for the products consumers want to compare. This is because product reviews are unstructured information and it is difficult to read sentiment of reviews and assessment dimension immediately. For example, consumers who want to purchase a laptop would like to check the assessment of comparative products at each dimension, such as performance, weight, delivery, speed, and design. Therefore, in this paper, we would like to propose a method to automatically generate multi-dimensional product assessment scores in product reviews that we would like to compare. The methods presented in this study consist largely of two phases. One is the pre-preparation phase and the second is the individual product scoring phase. In the pre-preparation phase, a dimensioned classification model and a sentiment analysis model are created based on a review of the large category product group review. By combining word embedding and association analysis, the dimensioned classification model complements the limitation that word embedding methods for finding relevance between dimensions and words in existing studies see only the distance of words in sentences. Sentiment analysis models generate CNN models by organizing learning data tagged with positives and negatives on a phrase unit for accurate polarity detection. Through this, the individual product scoring phase applies the models pre-prepared for the phrase unit review. Multi-dimensional assessment scores can be obtained by aggregating them by assessment dimension according to the proportion of reviews organized like this, which are grouped among those that are judged to describe a specific dimension for each phrase. In the experiment of this paper, approximately 260,000 reviews of the large category product group are collected to form a dimensioned classification model and a sentiment analysis model. In addition, reviews of the laptops of S and L companies selling at E-Commerce are collected and used as experimental data, respectively. The dimensioned classification model classified individual product reviews broken down into phrases into six assessment dimensions and combined the existing word embedding method with an association analysis indicating frequency between words and dimensions. As a result of combining word embedding and association analysis, the accuracy of the model increased by 13.7%. The sentiment analysis models could be seen to closely analyze the assessment when they were taught in a phrase unit rather than in sentences. As a result, it was confirmed that the accuracy was 29.4% higher than the sentence-based model. Through this study, both sellers and consumers can expect efficient decision making in purchasing and product development, given that they can make multi-dimensional comparisons of products. In addition, text reviews, which are unstructured data, were transformed into objective values such as frequency and morpheme, and they were analysed together using word embedding and association analysis to improve the objectivity aspects of more precise multi-dimensional analysis and research. This will be an attractive analysis model in terms of not only enabling more effective service deployment during the evolving E-Commerce market and fierce competition, but also satisfying both customers.

• Journal of Intelligence and Information Systems
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• v.23 no.2
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• pp.1-17
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• 2017

The deep learning framework is software designed to help develop deep learning models. Some of its important functions include "automatic differentiation" and "utilization of GPU". The list of popular deep learning framework includes Caffe (BVLC) and Theano (University of Montreal). And recently, Microsoft's deep learning framework, Microsoft Cognitive Toolkit, was released as open-source license, following Google's Tensorflow a year earlier. The early deep learning frameworks have been developed mainly for research at universities. Beginning with the inception of Tensorflow, however, it seems that companies such as Microsoft and Facebook have started to join the competition of framework development. Given the trend, Google and other companies are expected to continue investing in the deep learning framework to bring forward the initiative in the artificial intelligence business. From this point of view, we think it is a good time to compare some of deep learning frameworks. So we compare three deep learning frameworks which can be used as a Python library. Those are Google's Tensorflow, Microsoft's CNTK, and Theano which is sort of a predecessor of the preceding two. The most common and important function of deep learning frameworks is the ability to perform automatic differentiation. Basically all the mathematical expressions of deep learning models can be represented as computational graphs, which consist of nodes and edges. Partial derivatives on each edge of a computational graph can then be obtained. With the partial derivatives, we can let software compute differentiation of any node with respect to any variable by utilizing chain rule of Calculus. First of all, the convenience of coding is in the order of CNTK, Tensorflow, and Theano. The criterion is simply based on the lengths of the codes and the learning curve and the ease of coding are not the main concern. According to the criteria, Theano was the most difficult to implement with, and CNTK and Tensorflow were somewhat easier. With Tensorflow, we need to define weight variables and biases explicitly. The reason that CNTK and Tensorflow are easier to implement with is that those frameworks provide us with more abstraction than Theano. We, however, need to mention that low-level coding is not always bad. It gives us flexibility of coding. With the low-level coding such as in Theano, we can implement and test any new deep learning models or any new search methods that we can think of. The assessment of the execution speed of each framework is that there is not meaningful difference. According to the experiment, execution speeds of Theano and Tensorflow are very similar, although the experiment was limited to a CNN model. In the case of CNTK, the experimental environment was not maintained as the same. The code written in CNTK has to be run in PC environment without GPU where codes execute as much as 50 times slower than with GPU. But we concluded that the difference of execution speed was within the range of variation caused by the different hardware setup. In this study, we compared three types of deep learning framework: Theano, Tensorflow, and CNTK. According to Wikipedia, there are 12 available deep learning frameworks. And 15 different attributes differentiate each framework. Some of the important attributes would include interface language (Python, C ++, Java, etc.) and the availability of libraries on various deep learning models such as CNN, RNN, DBN, and etc. And if a user implements a large scale deep learning model, it will also be important to support multiple GPU or multiple servers. Also, if you are learning the deep learning model, it would also be important if there are enough examples and references.

• Journal of Intelligence and Information Systems
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• v.22 no.3
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• pp.143-163
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• 2016

The demographics of Internet users are the most basic and important sources for target marketing or personalized advertisements on the digital marketing channels which include email, mobile, and social media. However, it gradually has become difficult to collect the demographics of Internet users because their activities are anonymous in many cases. Although the marketing department is able to get the demographics using online or offline surveys, these approaches are very expensive, long processes, and likely to include false statements. Clickstream data is the recording an Internet user leaves behind while visiting websites. As the user clicks anywhere in the webpage, the activity is logged in semi-structured website log files. Such data allows us to see what pages users visited, how long they stayed there, how often they visited, when they usually visited, which site they prefer, what keywords they used to find the site, whether they purchased any, and so forth. For such a reason, some researchers tried to guess the demographics of Internet users by using their clickstream data. They derived various independent variables likely to be correlated to the demographics. The variables include search keyword, frequency and intensity for time, day and month, variety of websites visited, text information for web pages visited, etc. The demographic attributes to predict are also diverse according to the paper, and cover gender, age, job, location, income, education, marital status, presence of children. A variety of data mining methods, such as LSA, SVM, decision tree, neural network, logistic regression, and k-nearest neighbors, were used for prediction model building. However, this research has not yet identified which data mining method is appropriate to predict each demographic variable. Moreover, it is required to review independent variables studied so far and combine them as needed, and evaluate them for building the best prediction model. The objective of this study is to choose clickstream attributes mostly likely to be correlated to the demographics from the results of previous research, and then to identify which data mining method is fitting to predict each demographic attribute. Among the demographic attributes, this paper focus on predicting gender, age, marital status, residence, and job. And from the results of previous research, 64 clickstream attributes are applied to predict the demographic attributes. The overall process of predictive model building is compose of 4 steps. In the first step, we create user profiles which include 64 clickstream attributes and 5 demographic attributes. The second step performs the dimension reduction of clickstream variables to solve the curse of dimensionality and overfitting problem. We utilize three approaches which are based on decision tree, PCA, and cluster analysis. We build alternative predictive models for each demographic variable in the third step. SVM, neural network, and logistic regression are used for modeling. The last step evaluates the alternative models in view of model accuracy and selects the best model. For the experiments, we used clickstream data which represents 5 demographics and 16,962,705 online activities for 5,000 Internet users. IBM SPSS Modeler 17.0 was used for our prediction process, and the 5-fold cross validation was conducted to enhance the reliability of our experiments. As the experimental results, we can verify that there are a specific data mining method well-suited for each demographic variable. For example, age prediction is best performed when using the decision tree based dimension reduction and neural network whereas the prediction of gender and marital status is the most accurate by applying SVM without dimension reduction. We conclude that the online behaviors of the Internet users, captured from the clickstream data analysis, could be well used to predict their demographics, thereby being utilized to the digital marketing.

• Journal of Intelligence and Information Systems
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• v.26 no.2
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• pp.27-42
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• 2020

Traditional companies with offline stores were unable to secure large display space due to the problems of cost. This limitation inevitably allowed limited kinds of products to be displayed on the shelves, which resulted in consumers being deprived of the opportunity to experience various items. Taking advantage of the virtual space called the Internet, online shopping goes beyond the limits of limitations in physical space of offline shopping and is now able to display numerous products on web pages that can satisfy consumers with a variety of needs. Paradoxically, however, this can also cause consumers to experience the difficulty of comparing and evaluating too many alternatives in their purchase decision-making process. As an effort to address this side effect, various kinds of consumer's purchase decision support systems have been studied, such as keyword-based item search service and recommender systems. These systems can reduce search time for items, prevent consumer from leaving while browsing, and contribute to the seller's increased sales. Among those systems, recommender systems based on association rule mining techniques can effectively detect interrelated products from transaction data such as orders. The association between products obtained by statistical analysis provides clues to predicting how interested consumers will be in another product. However, since its algorithm is based on the number of transactions, products not sold enough so far in the early days of launch may not be included in the list of recommendations even though they are highly likely to be sold. Such missing items may not have sufficient opportunities to be exposed to consumers to record sufficient sales, and then fall into a vicious cycle of a vicious cycle of declining sales and omission in the recommendation list. This situation is an inevitable outcome in situations in which recommendations are made based on past transaction histories, rather than on determining potential future sales possibilities. This study started with the idea that reflecting the means by which this potential possibility can be identified indirectly would help to select highly recommended products. In the light of the fact that the attributes of a product affect the consumer's purchasing decisions, this study was conducted to reflect them in the recommender systems. In other words, consumers who visit a product page have shown interest in the attributes of the product and would be also interested in other products with the same attributes. On such assumption, based on these attributes, the recommender system can select recommended products that can show a higher acceptance rate. Given that a category is one of the main attributes of a product, it can be a good indicator of not only direct associations between two items but also potential associations that have yet to be revealed. Based on this idea, the study devised a recommender system that reflects not only associations between products but also categories. Through regression analysis, two kinds of associations were combined to form a model that could predict the hit rate of recommendation. To evaluate the performance of the proposed model, another regression model was also developed based only on associations between products. Comparative experiments were designed to be similar to the environment in which products are actually recommended in online shopping malls. First, the association rules for all possible combinations of antecedent and consequent items were generated from the order data. Then, hit rates for each of the associated rules were predicted from the support and confidence that are calculated by each of the models. The comparative experiments using order data collected from an online shopping mall show that the recommendation accuracy can be improved by further reflecting not only the association between products but also categories in the recommendation of related products. The proposed model showed a 2 to 3 percent improvement in hit rates compared to the existing model. From a practical point of view, it is expected to have a positive effect on improving consumers' purchasing satisfaction and increasing sellers' sales.

• Journal of Intelligence and Information Systems
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• v.28 no.1
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• pp.175-196
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• 2022

Information and communication and home appliance industries, which were one of South Korea's main industries, are gradually losing their export share as their export competitiveness is weakening. This study objectively analyzed export competitiveness and suggested export-promising countries in order to help South Korea's information communication and home appliance industries improve exports. In this study, network properties, centrality, and structural hole analysis were performed during network analysis to evaluate export competitiveness. In order to select promising export countries, we proposed a new variable that can take into account the characteristics of an already established International Trade Network (ITN), that is, the Global Value Chain (GVC), in addition to the existing economic factors. The conditional log-odds for individual links derived from the Exponential Random Graph Model (ERGM) in the analysis of the cross-border trade network were assumed as a proxy variable that can indicate the export potential. In consideration of the possibility of ERGM linkage, a parametric approach and a non-parametric approach were used to recommend export-promising countries, respectively. In the parametric method, a regression analysis model was developed to predict the export value of the information and communication and home appliance industries in South Korea by additionally considering the link-specific characteristics of the network derived from the ERGM to the existing economic factors. Also, in the non-parametric approach, an abnormality detection algorithm based on the clustering method was used, and a promising export country was proposed as a method of finding outliers that deviate from two peers. According to the research results, the structural characteristic of the export network of the industry was a network with high transferability. Also, according to the centrality analysis result, South Korea's influence on exports was weak compared to its size, and the structural hole analysis result showed that export efficiency was weak. According to the model for recommending promising exporting countries proposed by this study, in parametric analysis, Iran, Ireland, North Macedonia, Angola, and Pakistan were promising exporting countries, and in nonparametric analysis, Qatar, Luxembourg, Ireland, North Macedonia and Pakistan were analyzed as promising exporting countries. There were differences in some countries in the two models. The results of this study revealed that the export competitiveness of South Korea's information and communication and home appliance industries in GVC was not high compared to the size of exports, and thus showed that exports could be further reduced. In addition, this study is meaningful in that it proposed a method to find promising export countries by considering GVC networks with other countries as a way to increase export competitiveness. This study showed that, from a policy point of view, the international trade network of the information communication and home appliance industries has an important mutual relationship, and although transferability is high, it may not be easily expanded to a three-party relationship. In addition, it was confirmed that South Korea's export competitiveness or status was lower than the export size ranking. This paper suggested that in order to improve the low out-degree centrality, it is necessary to increase exports to Italy or Poland, which had significantly higher in-degrees. In addition, we argued that in order to improve the centrality of out-closeness, it is necessary to increase exports to countries with particularly high in-closeness. In particular, it was analyzed that Morocco, UAE, Argentina, Russia, and Canada should pay attention as export countries. This study also provided practical implications for companies expecting to expand exports. The results of this study argue that companies expecting export expansion need to pay attention to countries with a relatively high potential for export expansion compared to the existing export volume by country. In particular, for companies that export daily necessities, countries that should pay attention to the population are presented, and for companies that export high-end or durable products, countries with high GDP, or purchasing power, relatively low exports are presented. Since the process and results of this study can be easily extended and applied to other industries, it is also expected to develop services that utilize the results of this study in the public sector.

• Journal of Intelligence and Information Systems
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• v.19 no.4
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• pp.81-96
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• 2013

Video information retrieval has become a very important issue because of the explosive increase in video data from Web content development. Meanwhile, content-based video analysis using visual features has been the main source for video information retrieval and browsing. Content in video can be represented with content-based analysis techniques, which can extract various features from audio-visual data such as frames, shots, colors, texture, or shape. Moreover, similarity between videos can be measured through content-based analysis. However, a movie that is one of typical types of video data is organized by story as well as audio-visual data. This causes a semantic gap between significant information recognized by people and information resulting from content-based analysis, when content-based video analysis using only audio-visual data of low level is applied to information retrieval of movie. The reason for this semantic gap is that the story line for a movie is high level information, with relationships in the content that changes as the movie progresses. Information retrieval related to the story line of a movie cannot be executed by only content-based analysis techniques. A formal model is needed, which can determine relationships among movie contents, or track meaning changes, in order to accurately retrieve the story information. Recently, story-based video analysis techniques have emerged using a social network concept for story information retrieval. These approaches represent a story by using the relationships between characters in a movie, but these approaches have problems. First, they do not express dynamic changes in relationships between characters according to story development. Second, they miss profound information, such as emotions indicating the identities and psychological states of the characters. Emotion is essential to understanding a character's motivation, conflict, and resolution. Third, they do not take account of events and background that contribute to the story. As a result, this paper reviews the importance and weaknesses of previous video analysis methods ranging from content-based approaches to story analysis based on social network. Also, we suggest necessary elements, such as character, background, and events, based on narrative structures introduced in the literature. We extract characters' emotional words from the script of the movie Pretty Woman by using the hierarchical attribute of WordNet, which is an extensive English thesaurus. WordNet offers relationships between words (e.g., synonyms, hypernyms, hyponyms, antonyms). We present a method to visualize the emotional pattern of a character over time. Second, a character's inner nature must be predetermined in order to model a character arc that can depict the character's growth and development. To this end, we analyze the amount of the character's dialogue in the script and track the character's inner nature using social network concepts, such as in-degree (incoming links) and out-degree (outgoing links). Additionally, we propose a method that can track a character's inner nature by tracing indices such as degree, in-degree, and out-degree of the character network in a movie through its progression. Finally, the spatial background where characters meet and where events take place is an important element in the story. We take advantage of the movie script to extracting significant spatial background and suggest a scene map describing spatial arrangements and distances in the movie. Important places where main characters first meet or where they stay during long periods of time can be extracted through this scene map. In view of the aforementioned three elements (character, event, background), we extract a variety of information related to the story and evaluate the performance of the proposed method. We can track story information extracted over time and detect a change in the character's emotion or inner nature, spatial movement, and conflicts and resolutions in the story.

• Journal of Intelligence and Information Systems
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• v.21 no.4
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• pp.53-77
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• 2015

Mobile commerce provides a convenient shopping experience in which users can buy products without the constraints of time and space. Mobile commerce has already set off a mega trend in Korea. The market size is estimated at approximately 15 trillion won (KRW) for 2015, thus far. In the Korean market, social commerce and open market are key components. Social commerce has an overwhelming open market in terms of the number of users in the Korean mobile commerce market. From the point of view of the industry, quick market entry, and content curation are considered to be the major success factors, reflecting the rapid growth of social commerce in the market. However, academics' empirical research and analysis to prove the success rate of social commerce is still insufficient. Henceforward, it is to be expected that social commerce and the open market in the Korean mobile commerce will compete intensively. So it is important to conduct an empirical analysis to prove the differences in user experience between social commerce and open market. This paper is an exploratory study that shows a comparative analysis of social commerce and the open market regarding user experience, which is based on the mobile users' reviews. Firstly, this study includes a collection of approximately 10,000 user reviews of social commerce and open market listed Google play. A collection of mobile user reviews were classified into topics, such as perceived usefulness and perceived ease of use through LDA topic modeling. Then, a sentimental analysis and co-occurrence analysis on the topics of perceived usefulness and perceived ease of use was conducted. The study's results demonstrated that social commerce users have a more positive experience in terms of service usefulness and convenience versus open market in the mobile commerce market. Social commerce has provided positive user experiences to mobile users in terms of service areas, like 'delivery,' 'coupon,' and 'discount,' while open market has been faced with user complaints in terms of technical problems and inconveniences like 'login error,' 'view details,' and 'stoppage.' This result has shown that social commerce has a good performance in terms of user service experience, since the aggressive marketing campaign conducted and there have been investments in building logistics infrastructure. However, the open market still has mobile optimization problems, since the open market in mobile commerce still has not resolved user complaints and inconveniences from technical problems. This study presents an exploratory research method used to analyze user experience by utilizing an empirical approach to user reviews. In contrast to previous studies, which conducted surveys to analyze user experience, this study was conducted by using empirical analysis that incorporates user reviews for reflecting users' vivid and actual experiences. Specifically, by using an LDA topic model and TAM this study presents its methodology, which shows an analysis of user reviews that are effective due to the method of dividing user reviews into service areas and technical areas from a new perspective. The methodology of this study has not only proven the differences in user experience between social commerce and open market, but also has provided a deep understanding of user experience in Korean mobile commerce. In addition, the results of this study have important implications on social commerce and open market by proving that user insights can be utilized in establishing competitive and groundbreaking strategies in the market. The limitations and research direction for follow-up studies are as follows. In a follow-up study, it will be required to design a more elaborate technique of the text analysis. This study could not clearly refine the user reviews, even though the ones online have inherent typos and mistakes. This study has proven that the user reviews are an invaluable source to analyze user experience. The methodology of this study can be expected to further expand comparative research of services using user reviews. Even at this moment, users around the world are posting their reviews about service experiences after using the mobile game, commerce, and messenger applications.

• Journal of Intelligence and Information Systems
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• v.18 no.4
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• pp.97-116
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• 2012

Conceptual modeling is an important step for successful system development. It helps system designers and business practitioners share the same view on domain knowledge. If the work is successful, a result of conceptual modeling can be beneficial in increasing productivity and reducing failures. However, the value of conceptual modeling is unlikely to be evaluated uniformly because we are lack of agreement on how to elicit concepts and how to represent those with conceptual modeling constructs. Especially, designing relationships between components, also known as part-whole relationships, have been regarded as complicated work. The recent study, "Representing Part-Whole Relations in Conceptual Modeling : An Empirical Evaluation" (Shanks et al., 2008), published in MIS Quarterly, can be regarded as one of positive efforts. Not only the study is one of few attempts of trying to clarify how to select modeling alternatives in part-whole design, but also it shows results based on an empirical experiment. Shanks et al. argue that there are two modeling alternatives to represent part-whole relationships : an implicit representation and an explicit one. By conducting an experiment, they insist that the explicit representation increases the value of a conceptual model. Moreover, Shanks et al. justify their findings by citing the BWW ontology. Recently, the study from Shanks et al. faces criticism. Allen and March (2012) argue that Shanks et al.'s experiment is lack of validity and reliability since the experimental setting suffers from error-prone and self-defensive design. They point out that the experiment is intentionally fabricated to support the idea, as such that using concrete UML concepts results in positive results in understanding models. Additionally, Allen and March add that the experiment failed to consider boundary conditions; thus reducing credibility. Shanks and Weber (2012) contradict flatly the argument suggested by Allen and March (2012). To defend, they posit the BWW ontology is righteously applied in supporting the research. Moreover, the experiment, they insist, can be fairly acceptable. Therefore, Shanks and Weber argue that Allen and March distort the true value of Shanks et al. by pointing out minor limitations. In this study, we try to investigate the dispute around Shanks et al. in order to answer to the following question : "What is the proper value of the study conducted by Shanks et al.?" More profoundly, we question whether or not using the BWW ontology can be the only viable option of exploring better conceptual modeling methods and procedures. To understand key issues around the dispute, first we reviewed previous studies relating to the BWW ontology. We critically reviewed both of Shanks and Weber and Allen and March. With those findings, we further discuss theories on part-whole (or part-of) relationships that are rarely treated in the dispute. As a result, we found three additional evidences that are not sufficiently covered by the dispute. The main focus of the dispute is on the errors of experimental methods: Shanks et al. did not use Bunge's Ontology properly; the refutation of a paradigm shift is lack of concrete, logical rationale; the conceptualization on part-whole relations should be reformed. Conclusively, Allen and March indicate properly issues that weaken the value of Shanks et al. In general, their criticism is reasonable; however, they do not provide sufficient answers how to anchor future studies on part-whole relationships. We argue that the use of the BWW ontology should be rigorously evaluated by its original philosophical rationales surrounding part-whole existence. Moreover, conceptual modeling on the part-whole phenomena should be investigated with more plentiful lens of alternative theories. The criticism on Shanks et al. should not be regarded as a contradiction on evaluating modeling methods of alternative part-whole representations. To the contrary, it should be viewed as a call for research on usable and useful approaches to increase value of conceptual modeling.

• Journal of Intelligence and Information Systems
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• v.23 no.4
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• pp.33-56
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• 2017

As Internet usage is becoming more common worldwide and smartphone become necessity in daily life, technologies and applications related to mobile Internet are developing rapidly. The results of the Internet usage patterns of consumers around the world imply that there are many potential new business opportunities for mobile Internet technologies and applications. The location-based service (LBS) is a service based on the location information of the mobile device. LBS has recently gotten much attention among many mobile applications and various LBSs are rapidly developing in numerous categories. However, even with the development of LBS related technologies and services, there is still a lack of empirical research on the intention to use LBS. The application of previous researches is limited because they focused on the effect of one particular factor and had not shown the direct relationship on the intention to use LBS. Therefore, this study presents a research model of factors that affect the intention to use and actual use of LBS whose market is expected to grow rapidly, and tested it by conducting a questionnaire survey of 330 users. The results of data analysis showed that service customization, service quality, and personal innovativeness have a positive effect on the intention to use LBS and the intention to use LBS has a positive effect on the actual use of LBS. These results implies that LBS providers can enhance the user's intention to use LBS by offering service customization through the provision of various LBSs based on users' needs, improving information service qualities such as accuracy, timeliness, sensitivity, and reliability, and encouraging personal innovativeness. However, privacy concerns in the context of LBS are not significantly affected by service customization and personal innovativeness and privacy concerns do not significantly affect the intention to use LBS. In fact, the information related to users' location collected by LBS is less sensitive when compared with the information that is used to perform financial transactions. Therefore, such outcomes on privacy concern are revealed. In addition, the advantages of using LBS are more important than the sensitivity of privacy protection to the users who use LBS than to the users who use information systems such as electronic commerce that involves financial transactions. Therefore, LBS are recommended to be treated differently from other information systems. This study is significant in the theoretical point of contribution that it proposed factors affecting the intention to use LBS in a multi-faceted perspective, proved the proposed research model empirically, brought new insights on LBS, and broadens understanding of the intention to use and actual use of LBS. Also, the empirical results of the customization of LBS affecting the user's intention to use the LBS suggest that the provision of customized LBS services based on the usage data analysis through utilizing technologies such as artificial intelligence can enhance the user's intention to use. In a practical point of view, the results of this study are expected to help LBS providers to develop a competitive strategy for responding to LBS users effectively and lead to the LBS market grows. We expect that there will be differences in using LBSs depending on some factors such as types of LBS, whether it is free of charge or not, privacy policies related to LBS, the levels of reliability related application and technology, the frequency of use, etc. Therefore, if we can make comparative studies with those factors, it will contribute to the development of the research areas of LBS. We hope this study can inspire many researchers and initiate many great researches in LBS fields.

• Journal of Intelligence and Information Systems
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• v.23 no.4
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• pp.77-110
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• 2017

Recently, the diversification and individualization of consumption patterns through the web and mobile devices based on the Internet have been rapid. As this happens, the efficient operation of the offline store, which is a traditional distribution channel, has become more important. In order to raise both the sales and profits of stores, stores need to supply and sell the most attractive products to consumers in a timely manner. However, there is a lack of research on which SKUs, out of many products, can increase sales probability and reduce inventory costs. In particular, if a company sells products through multiple in-store stores across multiple locations, it would be helpful to increase sales and profitability of stores if SKUs appealing to customers are recommended. In this study, the recommender system (recommender system such as collaborative filtering and hybrid filtering), which has been used for personalization recommendation, is suggested by SKU recommendation method of a store unit of a distribution company that handles a homogeneous brand through a plurality of sales stores by country and region. We calculated the similarity of each store by using the purchase data of each store's handling items, filtering the collaboration according to the sales history of each store by each SKU, and finally recommending the individual SKU to the store. In addition, the store is classified into four clusters through PCA (Principal Component Analysis) and cluster analysis (Clustering) using the store profile data. The recommendation system is implemented by the hybrid filtering method that applies the collaborative filtering in each cluster and measured the performance of both methods based on actual sales data. Most of the existing recommendation systems have been studied by recommending items such as movies and music to the users. In practice, industrial applications have also become popular. In the meantime, there has been little research on recommending SKUs for each store by applying these recommendation systems, which have been mainly dealt with in the field of personalization services, to the store units of distributors handling similar brands. If the recommendation method of the existing recommendation methodology was 'the individual field', this study expanded the scope of the store beyond the individual domain through a plurality of sales stores by country and region and dealt with the store unit of the distribution company handling the same brand SKU while suggesting a recommendation method. In addition, if the existing recommendation system is limited to online, it is recommended to apply the data mining technique to develop an algorithm suitable for expanding to the store area rather than expanding the utilization range offline and analyzing based on the existing individual. The significance of the results of this study is that the personalization recommendation algorithm is applied to a plurality of sales outlets handling the same brand. A meaningful result is derived and a concrete methodology that can be constructed and used as a system for actual companies is proposed. It is also meaningful that this is the first attempt to expand the research area of the academic field related to the existing recommendation system, which was focused on the personalization domain, to a sales store of a company handling the same brand. From 05 to 03 in 2014, the number of stores' sales volume of the top 100 SKUs are limited to 52 SKUs by collaborative filtering and the hybrid filtering method SKU recommended. We compared the performance of the two recommendation methods by totaling the sales results. The reason for comparing the two recommendation methods is that the recommendation method of this study is defined as the reference model in which offline collaborative filtering is applied to demonstrate higher performance than the existing recommendation method. The results of this model are compared with the Hybrid filtering method, which is a model that reflects the characteristics of the offline store view. The proposed method showed a higher performance than the existing recommendation method. The proposed method was proved by using actual sales data of large Korean apparel companies. In this study, we propose a method to extend the recommendation system of the individual level to the group level and to efficiently approach it. In addition to the theoretical framework, which is of great value.