• Two Approaches
    • Collaborative Filtering: Predict based on past customer-item relationship data
    • Content-Based: Predict based on information of each customer and item itself
  • Assumption: Similar customers tend to like similar things overall
    • Based on this assumption, there is a method to do it with collaborative filtering
    • GroupLens: Early prediction algorithm
      • Measure similarity between customers using correlation coefficient
    • Matrix factorization of item-customer table
        • Fill in the unobserved parts based on the constraint that the table can be represented by the product of two low-dimensional matrices
      • Further extended to n-dimensional tensor factorization
      • Applicable to various situations such as item-customer-time or person-person-time, not just the two-dimensional relationship between items and customers
      • Calculation involves applying machine learning methods such as gradient descent (Information Science Expert)

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