The effect of context on misclassification costs in e-commerce applications
Conditions under which a contextual predictive model outperforms an un-contextual one in terms of misclassification costs. If the unit of analysis is a single customer or a micro-segment, including context reduces the total cost. If unit of analysis is a large segment or whole market, including context depends on dependent variable and cost of errors. The finer the contextual information the stronger the effect of context on total cost. The use of contextual predictive models depend on unity of analysis, dependent variable and costs of incorrect predictions.
context predictive model data mining business intelligence knowledge management applications