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AmazonCom Uses a Customer Profiling System Whenever a Customer Visits

question 55

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Amazon.com uses a customer profiling system whenever a customer visits its website.Using this system, Amazon can offer products tailored to that particular customer's profile and buying pattern.What is Amazon using to achieve this competitive advantage?

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Definitions:

Incentive Problem

A situation where the incentives or motivations of individuals or groups do not align with broader organizational or societal goals.

Continued Losses

Persistent financial deficits experienced by a business over multiple periods, indicating an inability to generate sufficient revenue to cover expenses.

Industry

Denotes a specific group of companies or businesses that produce or sell similar products and services.

Consumer Sovereignty

The concept that consumers' preferences and decisions dictate the production and sale of goods and services in an economy.

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