Monday, 28 September 2009

Product Placement

The internet provides an almost perfect market doesn't it? To the extent that information is freely and readily available and that the competition is really no more than a click or two away, at least in theory it is as close as we have got. Based on this understanding that consumers make logical, informed solutions, a lot of time and effort has been spent in optimising the on site experience via multivariate or A/B testing for example, to ensure that the "most appropriate" offer is put in front of the consumer at any given time.

A recent study from Alexander Felfernig and team (engagingly called Persuasive Recommendation: Serial Position Effects in Knowledge-Based Recommender Systems) demonstrated that the first product presented was chosen 2 and 1/2 times more than any other product. The order of presentation was, by some distance, the most impactful variable.

This too is a provable hypothesis of course, worth taking a look at some historical data....

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