LLM-Based Product Recommendation with Prospect Theoretic Self Alignment Strategy

Manying Zhang, Zehua Cheng, Damien Nouvel


Abstract
Accurate and personalized product recommendation is central to user satisfaction in e-commerce. However, a persistent language gap often exists between user queries and product titles or descriptions. While traditional user behavior-based recommenders and LLM-based Retrieval-Augmented Generation systems typically optimize for maximum likelihood objectives, they may struggle to bridge this gap or capture users’ true intent. In this paper, we propose a strategy based on Prospect Theoretic Self-Alignment, that reframes LLM-based recommendations as a utility-driven process. Given a user query and a set of candidate products, our model acts as a seller who anticipates latent user needs and generates product descriptions tailored to the user’s perspective. Simultaneously, it simulates user decision-making utility to assess whether the generated content would lead to a purchase. This self-alignment is achieved through a training strategy grounded in Kahneman & Tversky’s prospect theory, ensuring that recommendations are optimized for perceived user value rather than likelihood alone. Experiments on real-world product data demonstrate substantial improvements in intent alignment and recommendation quality, validating the effectiveness of our approach in producing personalized and decision-aware recommendations.
Anthology ID:
2025.ranlp-1.165
Volume:
Proceedings of the 15th International Conference on Recent Advances in Natural Language Processing - Natural Language Processing in the Generative AI Era
Month:
September
Year:
2025
Address:
Varna, Bulgaria
Editors:
Galia Angelova, Maria Kunilovskaya, Marie Escribe, Ruslan Mitkov
Venue:
RANLP
SIG:
Publisher:
INCOMA Ltd., Shoumen, Bulgaria
Note:
Pages:
1430–1436
Language:
URL:
https://preview.aclanthology.org/corrections-2026-01/2025.ranlp-1.165/
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Bibkey:
Cite (ACL):
Manying Zhang, Zehua Cheng, and Damien Nouvel. 2025. LLM-Based Product Recommendation with Prospect Theoretic Self Alignment Strategy. In Proceedings of the 15th International Conference on Recent Advances in Natural Language Processing - Natural Language Processing in the Generative AI Era, pages 1430–1436, Varna, Bulgaria. INCOMA Ltd., Shoumen, Bulgaria.
Cite (Informal):
LLM-Based Product Recommendation with Prospect Theoretic Self Alignment Strategy (Zhang et al., RANLP 2025)
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PDF:
https://preview.aclanthology.org/corrections-2026-01/2025.ranlp-1.165.pdf