Marketing Essentials 2012Chapter 15:
Closing the SaleeMarketing FeatureCollaborative Filtering
With collaborative filtering, purchase patterns can be discerned based on previous purchases by an individual or by customers that purchase similar products. Companies use collaborative filtering to make recommendations when a customer purchases a product. Collaborative filtering is an effective form of suggestion selling because data indicate that the customer may be interested in the suggested item(s). Amazon® and some other online catalog companies use collaborative filtering. For example, when you purchase a book on Amazon, you are directed to view a few additional books based on your previous purchases or based on what other customers who purchased that book have purchased in the past. Innovate and Create
Discuss the effectiveness of collaborative filtering as a form of suggestion selling. What makes it effective and what flaws do you see in its format? Why do you think the additional items are suggested after customers have made a commitment to buy but before they conduct their final online check out? What other methods of suggestion selling have you seen in practice online; especially on Amazon.com? For an online clothing e-tailer create the means for suggestion selling to take place before the final check out process. Decide what suggestion selling methods will work best for a clothing e-tailer.  | 
