An e-commerce company wants to segment customers by purchase history and preferences to deliver personalized experiences in its app. Which machine learning approach should they use?
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Correct answer: Clustering.
Why this is the answer
Clustering is the correct approach because it is an unsupervised learning technique used to group similar data points together based on their inherent characteristics. In this scenario, customer purchase history and preferences are the characteristics used to identify distinct customer segments without pre-defined labels. This allows the e-commerce company to discover natural groupings of customers for personalized experiences. Classification is incorrect because it requires labeled data to predict categories, which is not the primary goal here. Regression is incorrect as it predicts continuous values. Content generation is incorrect as it focuses on creating new content, not analyzing existing customer data for segmentation.
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