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Graph-Based Entropy for Detecting Explanatory Signs of Changes in Market

Yukio Ohsawa ()
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Yukio Ohsawa: The University of Tokyo

The Review of Socionetwork Strategies, 2018, vol. 12, issue 2, 183-203

Abstract: Abstract Graph-based entropy, an index of the diversity of events in their distribution to parts of a co-occurrence graph, is proposed for detecting signs of structural changes in the data that are informative in explaining latent dynamics of consumers’ behavior. For obtaining graph-based entropy, connected sub-graphs are first obtained from the graph of co-occurrences of items in the data. Then, the distribution of items occurring in events in the data to these sub-graphs is reflected on the value of graph-based entropy. For the data on the position of sale, a change in this value is regarded as a sign of the appearance, the separation, the disappearance, or the uniting of consumers’ interests. These phenomena are regarded as the signs of dynamic changes in consumers’ behavior that may be the effects of external events and information. Experiments show that graph-based entropy outperforms baseline methods that can be used for change detection, in explaining substantial changes and their signs in consumers’ preference of items in supermarket stores.

Keywords: Graph-based entropy; Explanatory signs of change; Marketing (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1007/s12626-018-0023-8

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