ABSTRACT
The inference for the luxury goods seller is that, unlike a common goods retailer, they should never lower prices or engage in discount sales promotions, for that would be contrary to the buyer's desideratum of exclusivity. Regression analysis and the restricted Boltzmann machine can reveal the overt and hidden features and correlations in raw input data, but deeper latent tendencies may remain buried and hidden in the data. In the marketing of high-priced luxury items, advertisements and commercials in high-class settings populated with the stylish upper class are overtly placed to attract new customers, but covertly designed to mitigate the buyer's post-purchase dissonance that overpriced items invariably engender by reinforcing the wisdom of the buyer's original choice, with the inference of promoting future purchases. The on-demand video website Netflix has found that factors such as age, gender, level of education, and demographics, or even the browsing history of the user, although useful, by themselves are inadequate precursors of movie choice.
