Imagine a physical world where there are hundreds upon hundreds of branches of the same store. I have a branch in my
neighborhood tailored to my needs, and you have a branch in your neighborhood tailored to yours. In the physical world this would
be impossible (notwithstanding a Starbucks on every corner); however, the movement toward E-commerce – commerce in the virtual
space – has produced business strategies that could never exist in the physical world. In his book Mass Customization (Pine, 1993),
Joe Pine argues that companies need to shift from the old world of mass production where “standardized products, homogeneous
markets, and long product life and development cycles were the rule” to the new world where “variety and customization supplant
standardized products.” Pine argues that building one product is simply not adequate anymore. At a minimum, companies need to
be able to develop multiple products that meet the multiple needs of multiple consumers. While E-commerce hasn’t necessarily
allowed businesses to produce more products, it has allowed them to provide consumers with more choices. Instead of tens of
thousands of books in a superstore, consumers may choose among millions of books in an online store. Increasing choice, however,
has also increased the amount of information that consumers must process before they are able to select which items meet their
needs. To address this information overload, e-commerce stores are applying mass customization principles not to the products but
to their presentation in the on-line store (Pine and Gilmore, 1999). One way to achieve mass customization in e-commerce is the use
of recommender systems.
Imagine a physical world where there are hundreds upon hundreds of branches of the same store. I have a branch in my
neighborhood tailored to my needs, and you have a branch in your neighborhood tailored to yours. In the physical world this would
be impossible (notwithstanding a Starbucks on every corner); however, the movement toward E-commerce – commerce in the virtual
space – has produced business strategies that could never exist in the physical world. In his book Mass Customization (Pine, 1993),
Joe Pine argues that companies need to shift from the old world of mass production where “standardized products, homogeneous
markets, and long product life and development cycles were the rule” to the new world where “variety and customization supplant
standardized products.” Pine argues that building one product is simply not adequate anymore. At a minimum, companies need to
be able to develop multiple products that meet the multiple needs of multiple consumers. While E-commerce hasn’t necessarily
allowed businesses to produce more products, it has allowed them to provide consumers with more choices. Instead of tens of
thousands of books in a superstore, consumers may choose among millions of books in an online store. Increasing choice, however,
has also increased the amount of information that consumers must process before they are able to select which items meet their
needs. To address this information overload, e-commerce stores are applying mass customization principles not to the products but
to their presentation in the on-line store (Pine and Gilmore, 1999). One way to achieve mass customization in e-commerce is the use
of recommender systems.
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