Collaborative Filtering
Collaborative filtering is a process used to match data of one user with data of similar users, based on purchase patterns, in order to generate recommendations for the user for future purchases. Amazon is a good example of a company that uses collaborative filtering in order to make its recommendations, based on a customer's prior purchases and the purchases of those who have purchased similar products. This is an example of market segmentation, based on customer behaviour, rather than the more traditional metrics of demographics and psychographics.
Maximizing Business Potential
