Business Management > DISCUSSION POST > Harvard University _BA Module_ SELF-STUDY 101 for A+ RESULTS (All)
3.3.1 The Shopping Cart A/B Test Now that we have learned how to perform a hypothesis test, let’s return to Amazon and look at a couple examples of A/B testing. So what we're trying to ... do is we're trying to improve the experience for our customers. That's part of our charter, part of our values is to be the most customer-centric company in the universe. So what does it mean to make things better for a customer? To me as an economist, how I'd view it is if you buy more of it, that might be in many, many instances, an indication that you like it more, that we've improved things for you. If you convert more often, that's an indication that we've improved the experience for our customers. We can't go out and ask them questions directly very often about do you like this versus that. We have to look at their actions. So the types of metrics that are the simplest and the most powerful for us are how much did you spend, how many units did you buy. Do we make a distinction between the dollar or euro or yen sales of product and the units that we sell? Because we have product that is at so many different price points from a $20 book to a $1,000 TV and everything in between? And so it's helpful for us to look at both the units that we sell, which is a measure of the engagement that we have with customers, and the absolute dollar sales, because of course the impact of buying $1,000 TV may tell us more about your long-term engagement with us than one purchase of a $20 item. The graphic that we decided to operate on in this A/B test is the persistent navigation that we have at the very top of every amazon.com page. It includes things like Welcome. It includes whether you're a Prime member. It includes our logo. It includes Help. It includes a link to your account. And it includes a little shopping cart icon that for a long time was static. It just looks like a shopping cart that you push through the aisles. If you click on it, it's the place that you go to see what you've put into your shopping cart during that session or some other session. As long as you remain logged in, we will persist what's in your cart, of course. And you can see the things that you've added yesterday, the day before, and in today's shopping session. We find people use it for all kinds of different things. The team that built thi [Show More]
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