Classifying Spending Behavior using Socio-Mobile Data

Abstract

Human spending behavior is essentially social. This work motivates and grounds the use of mobile phone based social interaction features for classifying spending behavior. Using a data set involving 52 adults (26 couples) living in a community for over a year, we find that social behavior measured via face-to-face interaction, call, and SMS logs, can be used to predict the spending behavior for couples in terms of their propensity to explore diverse businesses, become loyal customers, and overspend. Our results show that mobile phone based social interaction patterns can provide more predictive power on spending behavior than personality based features. Interestingly, we find that more social couples also tend to overspend. Obtaining such insights about couple level spending behavior via novel social-computing frameworks can be of vital importance to economists, marketing professionals, and policy makers.