The table below shows data from an online retailer of sports equipment. It began using software that recommends related products to customers at checkout. F...
Question 1 Report
The table below shows data from an online retailer of sports equipment. It began using software that recommends related products to customers at checkout. For example, a customer buying running shoes may be shown socks or a water bottle.
| Period | Website orders | Orders containing more than one product | Average order value |
|---|---|---|---|
| Before recommendations | 3,200 | 896 | $38 |
| After recommendations | 3,400 | 1,292 | $46 |
(a) Identify the percentage of orders containing more than one product after recommendations. [2]
(b) Explain one reason why the business should check that recommendations are relevant to customers. [2]
Answer Details
(a) The percentage is:
\[\frac{1292}{3400}\times100=38\%\]
So 38% of orders contained more than one product after recommendations. [2]
(b) Recommendations should be relevant because irrelevant suggestions may annoy customers or simply be ignored. This can reduce customer satisfaction and repeat sales, meaning the business gains less value from the recommendation software. [2]
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