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Customer Satisfaction of Recommender System: Examining Accuracy and Diversity in Several Types of Recommendation Approaches

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  • Jaekyeong Kim

    (School of Management, KyungHee University, 26, Kyungheedae-ro, Dongdaemun-gu, Seoul 02447, Korea
    Department of Big Data Analytics, KyungHee University, 26, Kyungheedae-ro, Dongdaemun-gu, Seoul 02447, Korea)

  • Ilyoung Choi

    (Graduate School of Business Administration, KyungHee University, 26, Kyungheedae-ro, Dongdaemun-gu, Seoul 02447, Korea)

  • Qinglong Li

    (Department of Big Data Analytics, KyungHee University, 26, Kyungheedae-ro, Dongdaemun-gu, Seoul 02447, Korea)

Abstract

Information technology and the popularity of mobile devices allow for various types of customer data, such as purchase history and behavior patterns, to be collected. As customer data accumulate, the demand for recommender systems that provide customized services to customers is growing. Global e-commerce companies offer recommender systems to gain a sustainable competitive advantage. Research on recommender systems has consistently suggested that customer satisfaction will be highest when the recommendation algorithm is accurate and recommends a diversity of items. However, few studies have investigated the impact of accuracy and diversity on customer satisfaction. In this research, we seek to identify the factors determining customer satisfaction when using the recommender system. To this end, we develop several recommender systems and measure their ability to deliver accurate and diverse recommendations and their ability to generate customer satisfaction with diverse data sets. The results show that accuracy and diversity positively affect customer satisfaction when applying a deep learning-based recommender system. By contrast, only accuracy positively affects customer satisfaction when applying traditional recommender systems. These results imply that developers or managers of recommender systems need to identify factors that further improve customer satisfaction with the recommender system and promote the sustainable development of e-commerce.

Suggested Citation

  • Jaekyeong Kim & Ilyoung Choi & Qinglong Li, 2021. "Customer Satisfaction of Recommender System: Examining Accuracy and Diversity in Several Types of Recommendation Approaches," Sustainability, MDPI, vol. 13(11), pages 1-20, May.
  • Handle: RePEc:gam:jsusta:v:13:y:2021:i:11:p:6165-:d:565639
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    References listed on IDEAS

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    1. Hea In Lee & Il Young Choi & Hyun Sil Moon & Jae Kyeong Kim, 2020. "A Multi-Period Product Recommender System in Online Food Market based on Recurrent Neural Networks," Sustainability, MDPI, vol. 12(3), pages 1-14, January.
    2. Her-Sen Doong & Hsiangchu Lai, 2008. "Exploring usage continuance of e-negotiation systems: expectation and disconfirmation approach," Group Decision and Negotiation, Springer, vol. 17(2), pages 111-126, March.
    3. Yan Guo & Chengxin Yin & Mingfu Li & Xiaoting Ren & Ping Liu, 2018. "Mobile e-Commerce Recommendation System Based on Multi-Source Information Fusion for Sustainable e-Business," Sustainability, MDPI, vol. 10(1), pages 1-13, January.
    4. Vicki McKinney & Kanghyun Yoon & Fatemeh “Mariam” Zahedi, 2002. "The Measurement of Web-Customer Satisfaction: An Expectation and Disconfirmation Approach," Information Systems Research, INFORMS, vol. 13(3), pages 296-315, September.
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    Cited by:

    1. Mohan Khanal & Sudip Raj Khadka & Harendra Subedi & Indra Prasad Chaulagain & Lok Nath Regmi & Mohan Bhandari, 2023. "Explaining the Factors Affecting Customer Satisfaction at the Fintech Firm F1 Soft by Using PCA and XAI," FinTech, MDPI, vol. 2(1), pages 1-15, January.
    2. Yuanyuan Zhuang & Jaekyeong Kim, 2021. "A BERT-Based Multi-Criteria Recommender System for Hotel Promotion Management," Sustainability, MDPI, vol. 13(14), pages 1-18, July.
    3. Shili Mohamed & Kaouthar Sethom & Abdallah Namoun & Ali Tufail & Ki-Hyung Kim & Hani Almoamari, 2022. "Customer Profiling Using Internet of Things Based Recommendations," Sustainability, MDPI, vol. 14(18), pages 1-21, September.
    4. Jaeho Jeong & Dongeon Kim & Xinzhe Li & Qinglong Li & Ilyoung Choi & Jaekyeong Kim, 2022. "An Empirical Investigation of Personalized Recommendation and Reward Effect on Customer Behavior: A Stimulus–Organism–Response (SOR) Model Perspective," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    5. Marek Gaworski & Piotr F. Borowski & Łukasz Kozioł, 2022. "Supporting Decision-Making in the Technical Equipment Selection Process by the Method of Contradictory Evaluations," Sustainability, MDPI, vol. 14(13), pages 1-17, June.

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