Shopping intention prediction using decision trees

  • Dario Šebalj
  • Jelena Franjković
  • Kristina Hodak
Keywords: Shopping intention, Price image, Retailer’s image, Classification algorithms, Machine learning

Abstract

Introduction: The price is considered to be neglected marketing mix element due to the complexity of price management and sensitivity of customers on price changes. It pulls the fastest customer reactions to that change. Accordingly, the process of making shopping decisions can be very challenging for customer.

Objective: The aim of this paper is to create a model that is able to predict shopping intention and classify respondents into one of the two categories, depending on whether they intend to shop or not.

Methods: Data sample consists of 305 respondents, who are persons older than 18 years involved in buying groceries for their household. The research was conducted in February 2017. In order to create a model, the decision trees method was used with its several classification algorithms.

Results: All models, except the one that used RandomTree algorithm, achieved relatively high classification rate (over the 80%). The highest classification accuracy of 84.75% gave J48 and RandomForest algorithms. Since there is no statistically significant difference between those two algorithms, authors decided to choose J48 algorithm and build a decision tree.

Conclusions: The value for money and price level in the store were the most significant variables for classification of shopping intention. Future study plans to compare this model with some other data mining techniques, such as neural networks or support vector machines since these techniques achieved very good accuracy in some previous research in this field.

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Published
2017-09-29
Section
Engineering, Technology, Management and Tourism