Recommendation agents work by performing cluster analysis on a spreadsheet where the rows are customers and the columns are SKUs.If there is a 0 in the cell, then the customer has purchased that item; if there is a 1, the customer has not purchased that item.

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Recommendation agents typically use collaborative filtering, content-based filtering, or hybrid methods, not cluster analysis with the described binary encoding. The description of 0 and 1 is also reversed; usually, 1 indicates a purchase, and 0 indicates no purchase.

Recommendation Agents Work by Performing Cluster Analysis on a Spreadsheet