Price-aware matrix factorization model for personalized recommendations

Abstract

Recommendation methods aim to assist consumers in their decision-making process to find products that they are quite likely interested in. Current recommendation methods generally use online consumer reviews or ratings to predict consumers’ preferences for products. In e-commerce transactions, price plays a significant role in consumers’ purchase decisions. And each consumer's preference for product prices is specific. In this paper, we propose a novel price-aware recommendation method based on the matrix factorization model which fully considers the effect of price. We distill the price preferences of consumers from ratings and discover consumers’ real preferences for products. We further calculate the price sensitivities of consumers, not only considering the difference in price preference between a consumer and others but also focusing on the consumers’ price preferences in a specific price range. The final predicted ratings are calculated by adding the term of price effect into the matrix factorization framework. The results show that the proposed method has achieved high accuracy and performed better than several existing methods in both rating prediction and Top-N recommendation. And the products we recommend for consumers are more in line with their price preferences. Moreover, we find that, to some extent, the proposed method can solve the long-tail product recommendation problem with the consideration of the price effect.