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Personalization, or customizing the experience of each individual user, is seen as a useful way to navigate the huge variety of choices on the Web today. A key tenet of personalization is the capacity to model user preferences. The paradigm has shifted from that of individual preferences, whereby we look at a user's past activities alone, to that of shared preferences, whereby we model the similarities in preferences between pairs of users (e.g., friends, people with similar interests). However, shared preferences are still too granular, because it assumes that a pair of users would share preferences across all items. We therefore postulate the need to pay attention to "context", which refers to the specific item on which the preferences between two users are to be estimated. In this paper, we propose a generative model for contextual agreement in preferences. For every triplet consisting of two users and an item, the model estimates both the prior probability of agreement between the two users, as well as the posterior probability of agreement with respect to the item at hand. The model parameters are estimated from ratings data. To extend the model to unseen ratings, we further propose several matrix factorization techniques focused on predicting agreement, rather than ratings. Experiments on real-life data show that our model yields context-specific similarity values that perform better on a prediction task than models relying on shared preferences.

With greater prevalence of social media, there is an increasing amount of user-generated data revealing consumer preferences for various products and services. Businesses seek to harness this wealth of data to improve their marketing strategies. Bundling, or selling two or more items for one price is a highly-practiced marketing strategy. In this paper, we address the bundle configuration problem from the data-driven perspective. Given a set of items in a seller's inventory, we seek to determine which items should belong to which bundle so as to maximize the total revenue, by mining consumer preferences data. We show that this problem is NP-hard when bundles are allowed to contain more than two items. Therefore, we describe an optimal solution for bundle sizes up to two items, and propose two heuristic solutions for bundles of any larger size. We investigate the effectiveness and the efficiency of the proposed algorithms through experimentations on real-life rating-based preferences data.