We present a study of the group purchasing behavior of daily deals in Groupon and LivingSocial and introduce a predictive dynamic model of collective attention for group buying behavior. In our model, the aggregate number of purchases at a given time comprises two types of processes: random discovery and social propagation. We find that these processes are very clearly separated by an inflection point. Using large data sets from both Groupon and LivingSocial we show how the model is able to predict the success of group deals as a function of time. We find that Groupon deals are easier to predict accurately earlier in the deal lifecycle than LivingSocial deals due to the final number of deal purchases saturating quicker. One possible explanation for this is that the incentive to socially propagate a deal is based on an individual threshold in LivingSocial, whereas in Groupon it is based on a collective threshold, which is reached very early. Furthermore, the personal benefit of propagating a deal is also greater in LivingSocial.
According to @cite_6 @cite_4 , a buyer's social network strongly influences her purchasing behavior. In @cite_4 , Guo et. al. analyze data from the e-commerce site Taobao Taobao is a Chinese Consumer Market place, and also the world's largest e-commerce website, http: www.taobao.com. to understand how individuals' commercial transactions are embedded in their social graphs. In the study, they show that implicit information passing exists in the Taobao network, and that communication between buyers drives purchases. However, according to the study presented in @cite_10 social factors may impose a different level of impact on the user purchase behavior for different e-commerce products.
@cite_10 @cite_4 @cite_6
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While social interactions are critical to understanding consumer behavior, the relationship between social and commerce networks has not been explored on a large scale. We analyze Taobao, a Chinese consumer marketplace that is the world's largest e-commerce website. What sets Taobao apart from its competitors is its integrated instant messaging tool, which buyers can use to ask sellers about products or ask other buyers for advice. In our study, we focus on how an individual's commercial transactions are embedded in their social graphs. By studying triads and the directed closure process, we quantify the presence of information passing and gain insights into when different types of links form in the network. Using seller ratings and review information, we then quantify a price of trust. How much will a consumer pay for transaction with a trusted seller? We conclude by modeling this consumer choice problem: if a buyer wishes to purchase a particular product, how does (s)he decide which store to purchase it from? By analyzing the performance of various feature sets in an information retrieval setting, we demonstrate how the social graph factors into understanding consumer behavior. In the era of social commerce, users often connect from e-commerce websites to social networking venues such as Facebook and Twitter. However, there have been few efforts on understanding the correlations between users' social media profiles and their e-commerce behaviors. This paper presents a system for predicting a user's purchase behaviors on e-commerce websites from the user's social media profile. We specifically aim at understanding if the user's profile information in a social network (for example Facebook) can be leveraged to predict what categories of products the user will buy from (for example eBay Electronics). The paper provides an extensive analysis on how users' Facebook profile information correlates to purchases on eBay, and analyzes the performance of different feature sets and learning algorithms on the task of purchase behavior prediction. In online peer-to-peer commerce places where physical examination of the goods is infeasible, textual descriptions, images of the products, reputation of the participants, play key roles. Visual image is a powerful channel to convey crucial information towards e-shoppers and influence their choice. In this paper, we investigate a well-known online marketplace where over millions of products change hands and most are described with the help of one or more images. We present a systematic data mining and knowledge discovery approach that aims to quantitatively dissect the role of images in e-commerce in great detail. Our goal is two-fold. First, we aim to get a thorough understanding of impact of images across various dimensions: product categories, user segments, conversion rate. We present quantitative evaluation of the influence of images and show how to leverage different image aspects, such as quantity and quality, to effectively raise sale. Second, we study interaction of image data with other selling dimensions by jointly modeling them with user behavior data. Results suggest that "watch" behavior encodes complex signals combining both attention and hesitation from buyer, in which image still holds an important role when compared to other selling variables, especially for products for which appearance is important. We conclude on how these findings can benefit sellers in a high competitive online e-commerce market. Previous studies on informational cascades have stressed the importance of informational social influences in decision-making. When people use the product evaluations of others to indicate product quality on the Internet, online herd behavior occurs. This work presents four studies examining herd behavior of online book purchasing. The first two studies addressed how two cues frequently found on the Internet, i.e., star ratings and sales volume, influence consumer online product choices. The last two studies investigated the relative effectiveness of different recommendation sources. The experimental results demonstrated that subjects use the product evaluations and choices of others as cues in making purchasing book decisions on the Internet bookstore. Additionally, recommendations of other consumers exerted a greater influence on subject choices than recommendations of an expert. Finally, recommendations from recommender system influenced online consumer choices more than those from website owners. The results and implications of this research are discussed.