Identifying Customer Needs from User-Generated Content

Firms traditionally rely on interviews and focus groups to identify customer needs for marketing strategy and product development. User-generated content (UGC) is a promising alternative source for identifying customer needs. However, established methods are neither efficient nor effective for large...

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Main Authors: Timoshenko, Artem, Hauser, John R
Other Authors: Sloan School of Management
Format: Article
Language:English
Published: Institute for Operations Research and the Management Sciences (INFORMS) 2020
Online Access:https://hdl.handle.net/1721.1/124203
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author Timoshenko, Artem
Hauser, John R
author2 Sloan School of Management
author_facet Sloan School of Management
Timoshenko, Artem
Hauser, John R
author_sort Timoshenko, Artem
collection MIT
description Firms traditionally rely on interviews and focus groups to identify customer needs for marketing strategy and product development. User-generated content (UGC) is a promising alternative source for identifying customer needs. However, established methods are neither efficient nor effective for large UGC corpora because much content is noninformative or repetitive. We propose a machine-learning approach to facilitate qualitative analysis by selecting content for efficient review. We use a convolutional neural network to filter out noninformative content and cluster dense sentence embeddings to avoid sampling repetitive content. We further address two key questions: Are UGC-based customer needs comparable to interview-based customer needs? Do the machine-learning methods improve customer-need identification? These comparisons are enabled by a custom data set of customer needs for oral care products identified by professional analysts using industry-standard experiential interviews. The analysts also coded 12,000 UGC sentences to identify which previously identified customer needs and/or new customer needs were articulated in each sentence. We show that (1) UGC is at least as valuable as a source of customer needs for product development, likely more valuable, compared with conventional methods, and (2) machine-learning methods improve efficiency of identifying customer needs from UGC (unique customer needs per unit of professional services cost). Keywords: customer needs; online reviews; machine learning; voice of the customer; user-generated content; market research; text mining; deep learning; natural language processing
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spelling mit-1721.1/1242032022-10-02T05:23:03Z Identifying Customer Needs from User-Generated Content Timoshenko, Artem Hauser, John R Sloan School of Management Firms traditionally rely on interviews and focus groups to identify customer needs for marketing strategy and product development. User-generated content (UGC) is a promising alternative source for identifying customer needs. However, established methods are neither efficient nor effective for large UGC corpora because much content is noninformative or repetitive. We propose a machine-learning approach to facilitate qualitative analysis by selecting content for efficient review. We use a convolutional neural network to filter out noninformative content and cluster dense sentence embeddings to avoid sampling repetitive content. We further address two key questions: Are UGC-based customer needs comparable to interview-based customer needs? Do the machine-learning methods improve customer-need identification? These comparisons are enabled by a custom data set of customer needs for oral care products identified by professional analysts using industry-standard experiential interviews. The analysts also coded 12,000 UGC sentences to identify which previously identified customer needs and/or new customer needs were articulated in each sentence. We show that (1) UGC is at least as valuable as a source of customer needs for product development, likely more valuable, compared with conventional methods, and (2) machine-learning methods improve efficiency of identifying customer needs from UGC (unique customer needs per unit of professional services cost). Keywords: customer needs; online reviews; machine learning; voice of the customer; user-generated content; market research; text mining; deep learning; natural language processing 2020-03-23T20:41:51Z 2020-03-23T20:41:51Z 2019-01 2017-04 2020-03-19T16:36:23Z Article http://purl.org/eprint/type/JournalArticle 0732-2399 1526-548X https://hdl.handle.net/1721.1/124203 Timoshenko, Artem and John R. Hauser. "Identifying Customer Needs from User-Generated Content." Marketing Science 38, 1 (January 2019): 1-192, ii-ii © 2019 INFORMS en http://dx.doi.org/10.1287/mksc.2018.1123 Marketing Science Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/ application/pdf Institute for Operations Research and the Management Sciences (INFORMS) Prof. Hauser
spellingShingle Timoshenko, Artem
Hauser, John R
Identifying Customer Needs from User-Generated Content
title Identifying Customer Needs from User-Generated Content
title_full Identifying Customer Needs from User-Generated Content
title_fullStr Identifying Customer Needs from User-Generated Content
title_full_unstemmed Identifying Customer Needs from User-Generated Content
title_short Identifying Customer Needs from User-Generated Content
title_sort identifying customer needs from user generated content
url https://hdl.handle.net/1721.1/124203
work_keys_str_mv AT timoshenkoartem identifyingcustomerneedsfromusergeneratedcontent
AT hauserjohnr identifyingcustomerneedsfromusergeneratedcontent