7. Customizing the Landing Page Without any information about Ailian, Amazon delivers generic product offers.
8. Physical Location IP Address mapping can be used to determine where Ailian is located. (See Quova)
9. IP Address Mapping Stubhub can use IP addresses to offer ads targeted to a user’s location. Banner ads based on a New York location
10. What Does Ailian Like? With cookies, Amazon can offer specific products tailored to Ailian based on her past behavior.
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12. Why are Recommenders Important? Used by major Internet firms (Amazon, NetFlix, Yahoo!) Recommenders can be beneficial to both consumers and firms. Increasing Supply-side Offerings Value to Consumers: • Learn about new products • Sort through myriad choices Value to Firms: • Convert browser to buyers • Cross-sell • Increase loyalty Online Offline Books CDs DVDs 3,000,000 250,000 18,000 70,000 10,000 1,000
16. The Amazon Approach Amazon uses all available information about customers in order to present the most relevant offer possible. 2 A bundle is created based on the look-alikes Customer views an item Amazon immediately identifies his profile and recent history, the product attributes and the behavior of similar customers 1 3 Additional items are proposed, based on other customers’ buying behavior
17. The Netflix Approach Utilizing customer information, Netflix is able to improve profits through its recommendation engine. The customer is asked to rate movies Movie ratings are used by Netflix to build the customer “persona” 1 2 Based on the “ persona ”, a group of movies the Customer will probably like is created 3 A movie is then recommended Based on the ratings provided by customer with a similar “persona” 4
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26. Sales Diversity O i http://papers.ssrn.com/sol3/papers.cfm?abstract_id=955984 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1321962 Product Consumer User k User j User i User l GINI Unique artists Before After Diff Before After Diff 0.9094 0.8781 -0.0312 10377.8 15033.22 4655.47 0.9069 0.9098 0.0029 10940 10240 -700
primary source for IP address data is the regional Internet registries which allocate and distribute IP; Data contributed by internet service providers ; network tests; statistical analysis
Amazon had a 28% lift in sales from its use of recommenders, driving almost $3B in revenue
Party a lot; gambling problem; oakland raiders fan; fb fan. Given the options, I choose fb.
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