A hybrid of sequential rules and collaborative filtering for product recommendation

Customers' purchase behavior may vary over time. Traditional collaborative filtering (CF) methods make recommendations to a target customer based on the purchase behavior of customers whose preferences are similar to those of the target customer; however, the methods do not consider how the customers' purchase behavior may vary over time. In contrast, the sequential rule-based recommendation method analyzes customers' purchase behavior over time to extract sequential rules in the form: purchase behavior in previous periods double right arrow purchase behavior in the current period. If a target customer's purchase behavior history is similar to the conditional part of the rule, then his/her purchase behavior in the current period is deemed to be the consequent part of the rule. Although the sequential rule method considers the sequence of customers' purchase behavior over time, it does not utilize the target customer's purchase data for the current period. To resolve the above problems, this work proposes a novel hybrid recommendation method that combines the segmentation-based sequential rule method with the segmentation-based KNN-CF method. The proposed method uses customers' RFM (Recency, Frequency, and Monetary) values to cluster customers into groups with similar RFM values. For each group of customers, sequential rules are extracted from the purchase sequences of that group to make recommendations. Meanwhile, the segmentation-based KNN-CF method provides recommendations based on the target customer's purchase data for the current period. Then, the results of the two methods are combined to make final recommendations. Experiment results show that the hybrid method outperforms traditional CF methods. (C) 2009 Elsevier Inc. All rights reserved.