Abstract

This study proposes a framework for a systems engineering-based approach to context-aware personalization, which is applied to e-commerce through the understanding and modeling of user behavior from their interactions with sales channels and media. The framework is practical and built on systems engineering principles. It combines three conceptual components to produce signals that provide content relevant to the users based on their behavior, thus enhancing their experience. These components are the ‘recognition and knowledge’ of the users and their behavior (persona); the awareness of users’ current contexts; and the comprehension of their situation and projection of their future status (intent prediction). The persona generator is implemented by leveraging an unsupervised machine learning algorithm to assign users into cohorts and learn cohort behavior while preserving their privacy in an ethical framework. The component of the users’ current context is fulfilled as a microservice that adopts novel e-commerce data interpretations. The best result of 97.3% accuracy for the intent prediction component was obtained by tokenizing categorical features with a pre-trained BERT (bidirectional encoder representations from transformers) model and passing these, as the contextual embedding input, to an LSTM (long short-term memory) neural network. Paired cohort-directed prescriptive action is generated from learned behavior as a recommended alternative to users’ shopping steps. The practical implementation of this e-commerce personalization framework is demonstrated in this study through the empirical evaluation of experimental results.

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