Internet Application Development
Lab 11
Topic: Recommendation System and Business Intelligence
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Problem Statement
Problem 1) Refer to Lab 1 (Problem 2), you have to incorporate business intelligence in your PVFC order processing system by adding a recommendation system.
Recommendation System
A recommendation system for an order processing system analyzes historical order data, user behavior, and item characteristics to predict and suggest products that a customer is likely to purchase next.
These systems:
- (i) Improve customer experience
- (ii) Increase Average Order Value (AOV) by identifying purchasing patterns and offering personalized recommendations.
Recommendation Techniques
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Collaborative Filtering (CF): Recommends items based on similar user behavior. If user A and B have similar order histories, the system suggests items purchased by B to user A.
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Content-Based Filtering: Suggests items similar to those a user has already purchased or viewed, based on item attributes (e.g., category, brand, or price).
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Hybrid Systems: Combines collaborative and content-based filtering to overcome limitations like the "cold start" problem (new users/items with no history).
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Association Rule Mining: Identifies items frequently bought together, ideal for "frequently bought together" bundles or upselling complementary items.
Assumption: Sufficient numbers of orders are present in database.
Functionalities to be added
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Display recommendation messages during Product Selection and Order Placement: "Customers who bought this also bought..."
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Reordering suggestions for customers.
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For employees/managers of PVFC: forecasting demand for secondary items when a primary item's sales increase. (Inventory Management)
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