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Published Articles >> Table of Contents >> Abstract
2003 IEEE/WIC International Conference on Web Intelligence (WI'03)
p. 182
Bundling and Pricing for Information Brokerage: Customer Satisfaction as a Means to Profit Optimization
D.J.A. Somefun, CWI
J.A. J.A. La Poutré, CWI and Eindhoven University of Technology
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DOI Bookmark: http://doi.ieeecomputersociety.org/10.1109/WI.2003.1241191
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| Abstract |
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Traditionally, the study of on-line dynamic pricing and bundling strategies for information goods is motivated by the value-extracting or profit-generating potential of these strategies. In this paper we discuss the relatively overlooked potential of these strategies to on-line learn more about customers’ preferences. Based on this enhanced customer knowledge an information broker can — by tailoring the brokerage services more to the demand of the various customer groups — persuade customers to engage in repeated transactions (i.e., generate customer lock-in). To illustrate the discussion, we show by means of a basic consumer model how, with the use of on-line dynamic bundling and pricing algorithms, customer lock-in can occur. The lock-in occurs because the algorithms can both find appropriate prices and (from the customers’ perspective) the most interesting bundles. In the conducted computer experiments we use an advanced genetic algorithm with a niching method to learn the most interesting bundles efficiently and effectively. brokerage; recommender systems.
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Citation:
D.J.A. Somefun, J.A. J.A. La Poutré,
"Bundling and Pricing for Information Brokerage: Customer Satisfaction as a Means to Profit Optimization,"
wi,
p. 182,
2003 IEEE/WIC International Conference on Web Intelligence (WI'03),
2003
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