Tag Archives: machine learning

Do Incentivized Reviews Poison the Well? Evidence from a Natural Experiment at Amazon.com

Park, Jaecheol, Arslan Aziz, Gene Moo Lee (2021) “Do Incentivized Reviews Poison the Well? Evidence from a Natural Experiment at Amazon.comWorking Paper.

  • Presentations: UBC (2021), WISE (2021)

The rapid growth in e-commerce has led to a concomitant increase in consumer’s reliance on digital word-of-mouth to inform their choices. As such, there is an increasing incentive for sellers to solicit reviews for their products. Recent studies have examined the direct effect of receiving incentives or introducing incentive policy on review writing behavior. However, since incentivized reviews are often only a small proportion of the overall reviews on a platform, it is important to understand how their presence on the platform has spillover effects on the unincentivized reviews which are often in the majority. Using a natural experiment caused by a policy change, a ban on the incentivized reviews, on Amazon.com in October 2016, we conducted the difference-in-differences analyses for three different periods after the policy implementation. Our results suggest that there are positive spillover effects on the review sentiment, length, helpfulness, and frequency, suggesting that the policy stimulates more reviews in the short-run, and more positive, longer, and more helpful reviews in the long run.

Learning Faces to Predict Matching Probability in an Online Dating Market

Kwon, Soonjae, Sung-Hyuk Park, Gene Moo Lee, Dongwon Lee (2021) “Learning Faces to Predict Matching Probability in an Online Dating Market”. Work-in-progress.

  • Under review for a conference presentation.
  • Based on an industry collaboration

With the increasing use of online matching markets, predicting the matching probability among users is crucial for better market design. Although previous studies have constructed visual features to predict the matching probability, facial features extracted by deep learning have not been widely used. By predicting user attractiveness in an online dating market, we find that deep learning-enabled facial features can significantly enhance prediction accuracy. We also predict the attractiveness at various evaluator groups and explain their different preferences based on the theory of evolutionary psychology. Furthermore, we propose a novel method to visually interpret deep learning-enabled facial features using the latest deep learning-based generative model. Our work contributes to IS researchers utilizing facial features using deep learning and interpreting them to investigate underlying mechanisms in online matching markets. From a practical perspective, matching platforms can predict matching probability more accurately for better market design and recommender systems for maximizing the matching outcome.

My thoughts on AI, Big Data, and IS Research

Last update: June 10th, 2021

Recently, I had a chance to share my thoughts on how Big Data Analytics and AI will impact Information Systems (IS) research. Thanks to ever-growing datasets (public and proprietary) and powerful computational resources (cloud API, open-source projects), AI and Big Data will be important in IS research in the foreseeable future. If you are an aspiring IS researcher, I believe that you should be able to embrace this and take advantage of this.

First, AI and Big Data are powerful “tools” for IS research. It could be intimidating to see all the fancy new AI techniques. But they are just tools to analyze your data. You don’t need to reinvent the wheel to use them. There are many open-source projects in Python and R that you can use to analyze your data. Also, many cloud services (e.g., Amazon Rekognition, Google Cloud ML, Microsoft Azure ML) allow you to use pre-trained AI models at a modest cost (that your professors can afford). What you need is some working knowledge in programming languages like Python and R. And a high-level understanding of the idea behind algorithms.

Don’t shy away from hands-on programming. Using AI and Big Data tools may not be a competitive advantage in the long run because of the democratization of AI tools. However, I believe it will be the new baseline. So you need to have it in your research toolbox. Specifically, I believe that IS researchers should have a working knowledge of Python/R programming and Linux environment. I recommend these online courses: Data ScienceMachine LearningLinuxSQL, and NoSQL.

Second, AI and Big Data Analytics are creating a lot of interesting new “phenomenon” in personal lives, firms, and societies. How AI and robots will be adopted in the workplace and how that will affect the labor market? Are we losing our jobs? Or can we improve our productivity with AI tools? How AI will be used in professional services by the experts? What are the unintended consequences (such as biases, security, privacy, misinformation) of AI adoptions in the organization and society? And how can we mitigate such issues? There are so many new and interesting research questions.

In order to conduct relevant research, I think that IS researchers should closely follow the emerging technologies. Again, it could be hard to keep up with all the advances. I try to keep up to date by reading industry reports (from McKinsey and Deloitte) and listening to many podcasts (e.g., Freakonomics Radio, a16 Podcasts by Andreessen Horowitz, Lex Fridman Podcast, Stanford’s Entrepreneurial Thought Leaders, HBR’s Exponential View by Azeem Azhar).

I hope this post may help new IS researchers shape their research strategies. I will try to keep updating this post. Cheers!

 

 

IS / Marketing Papers on Visual Data Analytics (Image, Video)

Last update: July 19, 2021

With the advent of social media and mobile platforms, visual data are becoming the first citizen in big data analytics research. Compared to textual data that require significant cognitive efforts to comprehend, visual data (such as image and video) can easily convey the message from the content creator to the general audience. To conduct large-scale studies on such data types, researchers need to use machine learning and computer vision approaches. In this post, I am trying to organize studies in Information Systems, Marketing, and other management disciplines that leverage large-scale analysis of image and video datasets. The papers are ordered randomly:

  1. Zhou, M., Chen, G. H., Ferreira, P., Smith, M. D. (2021) “Consumer Behavior in the Online Classroom: Using Video Analytics and Machine Learning to Understand the Consumption of Video Courseware,” Journal of Marketing Research, forthcoming.
  2. Shin, D., He, S., Lee, G. M., Whinston, A. B., Cetintas, S., Lee, K.-C. (2020) “Enhancing Social Media Analysis with Visual Data Analytics: A Deep Learning Approach,” MIS Quarterly 44(4): 1459-1492[Details]
  3. Li, Y., Xie, Y. (2020) “Is a Picture Worth a Thousand Words? An Empirical Study of Image Content and Social Media Engagement,” Journal of Marketing Research 57(2): 1-19.
  4. Zhang, Q., Wang, W., Chen, Y. (2020) “Frontiers: In-Consumption Social Listening with Moment-to-Moment Unstructured Data: The Case of Movie Appreciation and Live comments,” Marketing Science 39(2).
  5. Liu, L., Dzyabura, D., Mizik, N. (2020) “Visual Listening In: Extracting Brand Image Portrayed on Social Media,Marketing Science 39(4): 669-686.
  6. Peng, L., Cui, G., Chung, Y., Zheng, W. (2020) “The Faces of Success: Beauty and Ugliness Premiums in E-Commerce Platforms,” Journal of Marketing 84(4): 67-85.
  7. Liu, X., Zhang, B., Susarla, A., Padman, R. (2020) “Go to YouTube and Call Me in the Morning: Use of Social Media for Chronic Conditions,” MIS Quarterly 44(1b): 257-283.
  8. Park, S., Lee, G. M., Shin, D., Han, S.-P. (2020) “Targeting Pre-Roll Ads using Video Analytics,” Working Paper.
  9. Zhao, K., Hu, Y., Hong, Y., Westland, J. C. (2020) “Understanding Characteristics of Popular Streamers in Live Streaming Platforms: Evidence from Twitch.tv,” Journal of the Association for Information Systems, Forthcoming.
  10. Ordenes, F. V., Zhang, S. (2019) “From words to pixels: Text and image mining methods for service research,” Journal of Service Management 30(5): 593-620.
  11. Wang, Q., Li, B., Singh, P. V. (2018) “Copycats vs. Original Mobile Apps: A Machine Learning Copycat-Detection Method and Empirical Analysis,” Information Systems Research 29(2): 273-291.
  12. Lu, S., Xiao, L., Ding, M. (2016) “A Video-Based Automated Recommender (VAR) System for Garments,” Marketing Science 35(3): 484-510.
  13. Xiao, L., Ding, M. (2014) “Just the Faces: Exploring the Effects of Facial Features in Print Advertising,” Marketing Science 33(3), 315-461.
  14. Zhang, S., Lee, D., Singh, P. V., Srinivasan, K. (2018) “How Much is an Image Worth? Airbnb Property Demand Estimation Leveraging Large Scale Image Analytics,” CMU Working Paper.
  15. Choi, A., Ramaprasad, J., So, H. (2021) Does Authenticity of Influencers Matter? Examining the Impact on Purchase Decisions, Working Paper.
  16. Park, J., Kim, J., Cho, D., Lee, B. Pitching in Character: The Role of Video Pitch’s Personality Style in Online Crowdsourcing, Working Paper.
  17. Yang, J., Zhang, J., Zhang Y. (2021) First Law of Motion: Influencer Video Advertising on TikTok, Working Paper.
  18. Davila, A., Guasch (2021) Manager’s Body Expansiveness, Investor Perceptions, and Firm Forecast Errors and Valuation, Working Paper.
  19. Peng, L., Teoh, S. H., Wang, U., Yan, J. (2021) Face Value: Trait Inference, Performance Characteristics, and Market Outcomes for Financial Analysts, Working Paper.
  20. Zhang, S., Friedman, E., Zhang, X., Srinivasan, K., Dhar, R. (2020) Serving with a Smile on Airbnb: Analyzing the Economic Returns and Behavioral Underpinnings of the Host’s Smile,” Working Paper.
  21. Park, K., Lee, S., Tan, Y. (2020) “What Makes Online Review Videos Helpful? Evidence from Product Review Videos on YouTube,” UW Working Paper.
  22. Doosti, S., Lee, S., Tan, Y. (2020) “Social Media Sponsorship: Metrics for Finding the Right Content Creator-Sponsor Matches,” UW Working Paper.
  23. Koh, B., Cui, F. (2020) “Give a Gist: The Impact of Thumbnails on the View-Through of Videos,” KU Working Paper.
  24. Gunarathne, P., Rui, H., Seidman, A. (2019) “Racial Discrimination in Social Media Customer Service: Evidence from a Popular Microblogging Platform,” Rochester Working Paper.
  25. Hou J.R., Zhang J., Zhang K. (2018) Can title images predict the emotions and the performance of crowdfunding projects? Workshop on e-Business.

Trustworthy Face? The Effect and Drivers of Comprehensive Trust in Online Job Market Platform

Kwon, Jun Bum, Donghyuk Shin, Gene Moo Lee, Jake An, Sam Hwang (2020) “Trustworthy Face? The Effect and Drivers of Comprehensive Trust in Online Job Market Platform”. Work-in-progress.

The abstract will appear here.

Robots Serve Humans: Does AI Robot Adoption Enhance Operational Efficiency and Customer Experience?

Lee, Myunghwan, Gene Moo Lee, Donghyuk Shin, Sang-Pil Han (2020) “Robots Serve Humans: Does AI Robot Adoption Enhance Operational Efficiency and Customer Experience?Working Paper.

  • Presented at WITS (2020), KrAIS (2020), UBC (2021)
  • Research assistants: Raymond Situ, Gallant Tang

Service providers have been adopting various robotics technologies to improve operational efficiency and increase customer satisfaction. Robotics technologies bring new restaurant experiences to customers by taking orders, cooking, and serving. While the impact of industrial robots has been well documented in the literature, little is known about the impact of customer-facing service robot adoption. To fill this gap, this work-in-progress study aims to analyze the impact of service robot adoption on restaurant service quality using 4,612 restaurants and their online customer reviews. We analyzed the treated effect of robot adoption using a difference-in-differences approach with propensity score and exact matching. Estimation results show that restaurant robot adoption has a positive impact on customer satisfaction, specifically on perceived food quality and perceived value. This study provides both academic and practical implications on the emerging AI robotics techniques.

Corporate Social Network Analysis: A Deep Learning Approach

Cao, Rui, Gene Moo Lee, Hasan Cavusoglu (2020) “Corporate Social Network Analysis: A Deep Learning Approach,” Working Paper.

Identifying inter-firm relationships is critical in understanding the industry landscape. However, due to the dynamic nature of such relationships, it is challenging to capture corporate social networks in a scalable and timely manner. To address this issue, this research develops a framework to build corporate social network representations by applying natural language processing (NLP) techniques on a corpus of 10-K filings, describing the reporting firms’ perceived relationships with other firms. Our framework uses named-entity recognition (NER) to locate the corporate names in the text, topic modeling to identify types of relationships included, and BERT to predict the type of relationship described in each sentence. To show the value of the network measures created by the proposed framework, we conduct two empirical analyses to see their impacts on firm performance. The first study shows that competition relationship and in-degree measurements on all relationship types have prediction power in estimating future earnings. The second study focuses on the difference between individual perspectives in an inter-firm social network. Such a difference is measured by the direction of mentions and is an indicator of a firm’s success in network governance. Receiving more mentions from other firms is a positive signal to network governance and it shows a significant positive correlation with firm performance next year.

Targeting Pre-Roll Ads using Video Analytics

Park, Sungho, Gene Moo Lee, Donghyuk Shin, Sang-Pil Han. “Targeting Pre-Roll Ads using Video Analytics”, Under Reject ana Resubmit, Management Science. [Submitted: April 25, 2021]

  • Funded by Sauder Exploratory Research Grant 2020
  • Presented at Southern Methodist University (2020), University of Washington (2020), INFORMS (2020), WITS (2020), HKUST (2021), Maryland (2021), American University (2021)
  • Research assistants: Raymond Situ, Miguel Valarao

Pre-roll video ads continue to rise at an unparalleled pace, creating new opportunities and challenges. They are more immersive than conventional banner ads and must be viewed at least partially before the content video is played. On the other hand, the prevailing skippable format of pre-roll video ads that allows viewers to skip ads after five seconds generates opportunity costs for advertisers and online platforms when the ad is skipped. Against this backdrop, we propose a novel video analytics method for improving pre-roll video ad performance by extracting multi-modal (audio, video, text) properties from both video ads and content videos using deep learning and signal processing techniques, and then analyzing their effect on video ad completion. The findings indicate that the ad-content congruence in various modalities is essential in explaining viewers’ ad completion. Specifically, visual congruence (i.e., celebrity overlap in ad and content) and textual congruence (i.e., topic similarity of ad and content) play important roles as viewers may shape ex-ante expectations of the congruence based on visual cues (i.e., thumbnail images) and previous experience (i.e., watched content clips from the same program) before watching the content video. We also discover, through predictive analyses, that video ad completion can be reliably predicted by features derived from the proposed method. Surprisingly, there is no discernible loss of predictive power when analyzing only the first five seconds of ads and content videos rather than their entire length, resulting in significant cost savings when processing large video datasets.

Structural Hole-based Measures of Firm’s Strategic Competitive Positioning

Lee, Myunghwan, Gene Moo Lee, Hasan Cavusoglu, Marc-David L. Seidel. “Structural Hole-based Measures of Firm’s Strategic Competitive Positioning”, Working Paper.

The theory of network opportunity emergence holds that as the overall industry network structure becomes centralized, opportunities emerge for new entrants. However, new entrants must correctly strategically position themselves in the market to be properly valued. This creates tensions for entrepreneurial ventures considering going public around how to craft their strategic posture to take advantage of differentiating opportunities in the market structure while still being familiar enough to customers and investors. In this paper, we propose a theory of IPO strategic posture to unpack these dynamics. We empirically test our theory using a machine learning approach called doc2vec to create a similarity matrix of all existing U.S. publicly traded companies based upon self-provided business descriptions provided in their 10-K annual reports. This enables us to measure existing companies’ similarities of strategic postures and identify where industry-level structural holes emerge. We then use these structural hole signatures of potential market entry opportunities to predict how new companies strategically posture an IPO. We then follow the trajectories of those newly listed companies to see how their strategic posture impacts growth and ultimate survival. We conclude with a discussion of how the institutional pressures of the venture capital industry create pressure for ventures to self-present their IPO strategic postures as too distinct for their own long-term survival.

Enhancing Social Media Analysis with Visual Data Analytics: A Deep Learning Approach (MISQ 2020)

Shin, Donghyuk, Shu He, Gene Moo Lee, Andrew B. Whinston, Suleyman Cetintas, Kuang-Chih Lee (2020) “Enhancing Social Media Analysis with Visual Data Analytics: A Deep Learning Approach,” MIS Quarterly, 44(4), pp. 1459-1492. [SSRN]

  • Based on an industry collaboration with Yahoo! Research
  • The first MISQ methods article based on machine learning
  • Presented in WeB (Fort Worth, TX 2015), WITS (Dallas, TX 2015), UT Arlington (2016), Texas FreshAIR (San Antonio, TX 2016), SKKU (2016), Korea Univ. (2016), Hanyang (2016), Kyung Hee (2016), Chung-Ang (2016), Yonsei (2016), Seoul National Univ. (2016), Kyungpook National Univ. (2016), UKC (Dallas, TX 2016), UBC (2016), INFORMS CIST (Nashville, TN 2016), DSI (Austin, TX 2016), Univ. of North Texas (2017), Arizona State (2018), Simon Fraser (2019), Saarland (2021), Kyung Hee (2021)

This research methods article proposes a visual data analytics framework to enhance social media research using deep learning models. Drawing on the literature of information systems and marketing, complemented with data-driven methods, we propose a number of visual and textual content features including complexity, similarity, and consistency measures that can play important roles in the persuasiveness of social media content. We then employ state-of-the-art machine learning approaches such as deep learning and text mining to operationalize these new content features in a scalable and systematic manner. For the newly developed features, we validate them against human coders on Amazon Mechanical Turk. Furthermore, we conduct two case studies with a large social media dataset from Tumblr to show the effectiveness of the proposed content features. The first case study demonstrates that both theoretically motivated and data-driven features significantly improve the model’s power to predict the popularity of a post, and the second one highlights the relationships between content features and consumer evaluations of the corresponding posts. The proposed research framework illustrates how deep learning methods can enhance the analysis of unstructured visual and textual data for social media research.