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Amazon.com relies on an expert 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 in common. 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 hundreds 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) Give examples of several ways expert systems can be used in business decision- making situations for Wheelies Group of companies.
b) How do you feel about online merchants tracking your purchases and using this information to recommend additional purchases? Is this ethical?
Expert Answer
Wheelies group of companies can use expert systems to suggest bikes to their customers on the basis of their age groups or their needs such as hybrid bike, mountain bike etc. or their budget.They can also suggest bikes that are popular in a particular area. Moreover expert system can be used for recommending right tools and accessories.
b)
Online merchants collects data about puchases for basically two purposes, to increase business profits and to market their product more effectively. This also helps in providing better customer experience. Choosing products becomes more easy. Products, which a customer may not know, becomes known to him/her.
