Assigning discounts in a marketing campaign by using reinforcement learning and neural networks

  • Authors:
  • Gabriel Gómez-Pérez;José D. Martín-Guerrero;Emilio Soria-Olivas;Emili Balaguer-Ballester;Alberto Palomares;Nicolás Casariego

  • Affiliations:
  • Digital Signal Processing Group, Department of Electronic Engineering, University of Valencia, CL. Dr. Moliner, 50. 46100 Burjassot, Valencia, Spain;Digital Signal Processing Group, Department of Electronic Engineering, University of Valencia, CL. Dr. Moliner, 50. 46100 Burjassot, Valencia, Spain;Digital Signal Processing Group, Department of Electronic Engineering, University of Valencia, CL. Dr. Moliner, 50. 46100 Burjassot, Valencia, Spain;Tissat S.A., iSUM Department, Avenue Leonardo Da Vinci, 5. 46980 Paterna, Valencia, Spain;Tissat S.A., iSUM Department, Avenue Leonardo Da Vinci, 5. 46980 Paterna, Valencia, Spain;Espirius Europa Ltd., Spain

  • Venue:
  • Expert Systems with Applications: An International Journal
  • Year:
  • 2009

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Abstract

In this work, RL is used to find an optimal policy for a marketing campaign. Data show a complex characterization of state and action spaces. Two approaches are proposed to circumvent this problem. The first approach is based on the self-organizing map (SOM), which is used to aggregate states. The second approach uses a multilayer perceptron (MLP) to carry out a regression of the action-value function. The results indicate that both approaches can improve a targeted marketing campaign. Moreover, the SOM approach allows an intuitive interpretation of the results, and the MLP approach yields robust results with generalization capabilities.