Recommendation Agents Work by Performing Cluster Analysis on a Spreadsheet

question 15

True/False

Recommendation agents work by performing cluster analysis on a spreadsheet where the rows are customers and the columns are SKUs.If there is a 0 in the cell, then the customer has purchased that item; if there is a 1, the customer has not purchased that item.

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Definitions:

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of production and the quantity of output increase.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different consumers, based on market segments, capacity to pay, or purchasing contexts.

Monopoly Power

The ability of a monopolist to significantly control market price or exclude competition in a particular market.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices to different buyers.