Case-Based Marketing Selling on Amazon.com A case-based reasoning system is a type of expert system. It attempts to match the facts on hand to a database of prior cases. When a case-based reasoning system finds one or more cases in its database that closely match the facts at hand, it then evaluates and reports the most common outcomes. Given enough cases, such a system can prove very useful. Even better if a case-based system automatically captures cases as they occur, then it will become a powerful tool that continually fine-tunes its results as it gains “experience.” Amazon.com relies on just such a system to refer books to its customers. Like many e-commerce sites, Amazon allows visitors to search for, buy, and review books. Amazon.com takes its database interactivity a step further. Given a particular book title, its case-based reasoning engine examines all past sales of that book to see if the customers who bought that book shared other book purchases. It then produces a short list and presents that list to the user. The overall effect approaches that of a sales clerk who says, “Oh! If you like this book, then you’ll really like reading these as well.” Amazon’s system has the experience of hundred of millions more transactions than even the most wizened and well-read sales clerk. Equipped with this information, customers may consider purchasing additional books, or the information may increase customers’ confidence that they have selected the right book. Better information increases customers’ confidence in their purchases and encourages additional sales.
a. What is the source of expertise behind Amazon’s online book recommendations?
b. What measures protect consumers from the government is obtaining their personal shopping histories maintained by Amazon?
c. Although Amazon does not share personal information, it still capitalizes on its customers’ shopping data. Is this ethical? Should Amazon offer its customers the right to opt out of this information gathering?