The process by which a software program sifts through user profiles or usage patterns and makes recommendations based on purchasing habits. For example, if you go to a Web site looking for a book on vegetarian cooking, and you click on the profile of that book, collaborative filtering technology kicks in and recommends a list of similar books. Its list is based on data that reflects the buying habits of other people who purchased that book. Collaborative filtering is a tool intended to increase e-commerce sales through targeted recommendations of additional products (though many see it as a cross between capitalism and big brother).
NetLingo Classification: Online Business