Building Better Recommendation Engines
Episode Description
n today’s data-rich environment, everyone from retailers to content providers is constantly suggesting options they think consumers will like based on past behavior. Research by Wharton’s Kartik Hosanagar takes a closer look at the real impact of those recommendations. More: http://knlg.net/1PKVfEJ 📂 Marketing 🏷️ Research
Brief Summary
Personalized recommendations shape consumer choices but often favor mainstream products over niche options.
Key points
- Impact of Recommendations on Consumer Choice. Research shows that personalized recommendations significantly influence consumer choices online.
- Surprising Findings on Product Ratings. Lower-rated products elicit a greater response when recommended than higher-rated ones.
- Niche Products and Recommendations. Contrary to popular belief, recommendations may not help discover niche products.
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Episode highlights
- Impact of Recommendations on Consumer ChoiceResearch shows that personalized recommendations significantly influence consumer choices online.“Recommendations drive anywhere from a quarter to a third of choices consumers make online.”0:46Dec 4, 2015
- Surprising Findings on Product RatingsLower-rated products elicit a greater response when recommended than higher-rated ones.“Recommendations and ratings are in some way substitutes.”3:51Dec 4, 2015
- Niche Products and RecommendationsContrary to popular belief, recommendations may not help discover niche products.“Recommendations don't necessarily help us discover niche products.”5:43Dec 4, 2015
Episode quotes
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