When Amazon recommends a product on its site, it is clearly not a coincidence. 3
ID: 400060 • Letter: W
Question
When Amazon recommends a product on its site, it is clearly not a coincidence.
35% of Amazon.com’s revenue is generated by its recommendation engine (https://www.mckinsey.com/industries/retail/our-insights/how-retailers-can-keep-up-with-consumers)
Do not Discuss How Amazon’s Recommendation Engine Works
Discuss 1) How Amazon’s recommendation engine increases its revenue. 2) how consumers feel and react on Amazon's recommendation system.
https://www.youtube.com/watch?v=S4RL6prqtGQ
https://www.youtube.com/watch?v=Eeg1DEeWUjA
https://www.youtube.com/watch?v=1RYKgj-QK4I
Explanation / Answer
1) Recommendation engine provides user recommendation of product they are likely to buy. Amazon uses collaboration filtering technique for recommendation.Amazon increase its revenue because they do not need a market research for customer whether it is willing to purchase at a shop.
2) customers feel and react on amazon recommendation system :- Recommendation system gives a satisfaction to the customer because it helps in by provides relative data what the customer is looking for by previous session.
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