Big Data Stupid Decisions

VIStorage

Oct 11, 2011 (6 years and 1 month ago)

1,370 views

The Importance Of Measuring What We Should Be Measuring

Bi
g
Data
g
Stupid Decisions
The Importance Of Measuring
WhatWeShouldBeMeasuring
What

We

Should

Be

Measuring
Panos@Ipeirotis
Stern School of Business, New York University
“A Computer Scientist in a Business School

http://behind-the-enemy-lines.com
Shopping for a camera
Multiple merchants sell the same camera
Consumers do not always buy the cheapest
Willoughby’s enjoys a 7.5% price premium (= $140)
Price Premium Percentages, Amazon.com
Transaction price compared to competition
20000
14000
16000
18000
20000
ions
10000
12000
14000
o
f Transact
4000
6000
8000
Number
o
0
2000
4000
+100%
-100%
0%
+30%
Customers care about reputation!
The price of Willoughby’s reputation(*): $140
(
*
)
vs
17
th
streetphoto
()

vs
17
street

photo
What is reputation?
Factors affecting pricing power
Number of stars

乵浢敲潦灡獴t牡湳慣瑩潮r

乵浢敲



灡獴

瑲慮獡捴楯湳
…
Text!
My reputation, Iago, my reputation!
-Shakespeare,Othello
How text affects reputation?
The value of text
The value of text
Misspellings…
Misspellings…
good packaging
-0.56%
Positive?
Negative
?
Positive?

Negative
?
Recommendation Letters:
“He is a good student”
“Hkhd”
“H
e wor
k
s
h
ar
d”
Decision: Reject
AAA++++ seller
-2.93%
Positive?
Negative
?
Positive?

Negative
?
People interpret things differently,
accordingtothecontext
according

to

the

context
Lesson #1
Adapttotheenvironment
Adapt

to

the

environment
One size does notfit all!
Same idea, different focus:
How reviews (text) affect product sales?
Best camera!
-0.20%
Positive?
Negative
?
Positive?

Negative
?
Tell me something specific, you shill!
Positive
Negative
?
?
Positive
Negative
?
?
“If this is the worst that can happen…”
What product features do customers want?
Point-and-Shoot: Lenses, zoom, …
%Discussion
%

Discussion
Zoom
Lenses
Megapixel
BatteryLife
Zoom
Lenses
Megapixel
Battery

Life
Point-and-Shoot: Lenses, zoom, …
% Discussion
Effect on Sales
Zoom
Lenses
Megapixel
BatteryLife
Zoom
Lenses
Megapixel
Battery

Life
Lesson #2
Not sufficient to know what people say
Measure what
p
eo
p
le DO
pp
Reviews, Grammar, and Hotel Bookings
Bad Grammar → Bad Sales
Zappostakes action!
Examined and fixed grammar for
millions
ofreviewsonZapposcom!
millions
of

reviews

on

Zappos
.
com!

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啳敤

䅭慺潮

䵥捨慮楣慬

呵牫

灡祩湧⁾␰⸱〠灥爠牥癩敷
Improved product sales!
But… is it ethical?
“Would you correct a friend’s tweet or
Facebookpost?

Nit
p
ick a collea
g
ue for usin
g
shorthand in
p
gg
emails sent from his iPhone?

This level of social intrusion is almost
unthinkable.”
Experiment: Fixed 1000 reviews
Emailed authors: “Do you approve of the changes?

Gift card for replying
Result: 978 replies, not a single negative evaluation!
“Thank you! I almost feel that I am ‘stoopid’ when I leave such reviews!”
“Hthiitdtdli!Whillitbfid?”
“H
ey,
th
e rev
i
ew
i
s no
t
up
d
a
t
e
d
on
li
ne
!

Wh
en w
ill

it

b
e
fi
xe
d?”
Experiment: Fixed 1000 reviews
Emailed readers: “Do you approve of the changes?

Version 1: Only new version posted

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“
剥癩敷桡h扥敮敤楴敤
”
)

噥牳楯V



䑩獣污業敲

⡒eview

桡h

扥敮

敤楴敤
…
)
Version 3: Disclaimer + mouseoverto see old review
Result: For version 3, unanimously positive replies!
“Can you do the same for YouTube comments?
MyeyeshurteverytimethatIreadthem

My

eyes

hurt

every

time

that

I

read

them
Lesson #3
Checkyour gut instinct at the entrance
Measure and thentalk!
Lessons
1.Measure in context: one size does not fit all
2.Measure what people do, not what they say
3.Measure!
Thank
y
ou!
y