Research: Evaluating the Effect of Personalised Recommendations on Customer Basket Size...

Research question: How do personalised product recommendations influence basket size and purchasing behaviour in online retail environments?

Background & Motivation: The rapid expansion of e-commerce has introduced sophisticated personalisation engines that tailor product recommendations to individual customers. These systems are widely implemented, yet their specific impact on customer behaviour, particularly basket size, remains nuanced and context-dependent.

Research Gap / Question: While existing literature documents increased conversion rates from recommendation systems, less is known about how personalisation affects the total number and value of items purchased in a single transaction. This project seeks to quantify that impact and disentangle the psychological and behavioural drivers behind basket expansion or contraction.

Approach & Expected Contribution: The study will employ a quasi-experimental design using real-world e-commerce transaction data, comparing basket sizes for users exposed to personalised recommendations versus those who are not. Advanced statistical methods and causal inference techniques (e.g., propensity score matching) will isolate the effect of personalisation. The findings will contribute actionable insights for e-commerce strategy and marketing analytics.

Why It Matters: Understanding the true effect of personalisation on basket size can inform both platform design and marketing spend allocation, enabling e-commerce firms to optimise recommendation systems for revenue and customer satisfaction.